Cogent Realty Advisors’ Q1 2025 report reveals shifting dynamics in NYC’s office market, highlighting strong tenant leverage and new opportunities.
-- As the New York City office market enters a new phase of post-pandemic recovery, tenants continue to benefit from favorable leasing conditions, according to the newly released New York Office Report Q1 2025 by Cogent Realty Advisors, a licensed commercial real estate brokerage firm serving tenants exclusively.
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The report highlights a steady increase in asking rents—now averaging $52.52 per square foot in Manhattan—alongside a decline in vacancy rates, which fell to 18.4% this quarter. Despite the modest rise in rent, an oversupply of office space continues to shift leverage toward tenants.
“This is still a tenant’s market,” said Mitchell Waldman, founder of Cogent Realty Advisors. “We’re seeing increased competition among landlords across asset classes, which creates significant negotiating power for companies looking to lease or renew office space in 2025.”
CoStar, the leading commercial real estate analytics firm, confirms that the Manhattan office market remains in flux. Total inventory decreased to approximately 430 million square feet, and the number of existing buildings dipped slightly to 1,540—an indication of consolidation and adaptive reuse trends.
Across New York City’s most sought-after neighborhoods, asking rents remain highly variable. Prime Midtown districts such as the Plaza District command average asking rents of $66.61 per square foot, while more affordable submarkets such as the Penn Station/Fashion District and Brooklyn offer space in the low-to-mid $40 range. Notably, the Upper East Side recorded the highest average rent in the city at $111.89 per square foot.
The report identifies five key trends driving tenant opportunities in 2025:
- Tenants are maintaining strong leverage in both new lease and renewal negotiations.
- Landlords of Class A, B, and C properties are actively competing for tenants.
- Flexible lease terms—including shorter durations and turnkey office suites—are becoming more common.
- Top-tier buildings are offering premium incentives such as free rent, move-in ready spaces, and buildout allowances.
- Mid-tier assets are adjusting pricing downward to remain competitive.
The full report also includes a breakdown of office pricing across more than 30 NYC submarkets, as well as special feature articles on leasing near Grand Central Terminal, Hudson Yards, and Downtown Manhattan.
Cogent Realty Advisors, founded in 2002, specializes in tenant representation only, with no fees charged to clients. The firm’s model provides unbiased advice to companies seeking office space throughout Manhattan and the outer boroughs.
“Choosing an office in New York City is a major business decision,” said Waldman. “Our role is to make that process easier, more strategic, and cost-effective. With our data-driven approach and market access, we’re able to deliver exceptional results for our clients.”
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