Class A and Class B properties approach pre-pandemic levels as leasing activity broadens beyond trophy towers.
The answer · checked against CoStar
Is Manhattan office availability declining and how close are Class A and Class B properties to pre-pandemic levels?
Manhattan's office market ended the third quarter with availability continuing to decline across Class A, Class B, and trophy properties. Class A and Class B availability are narrowing the gap with pre-pandemic levels. Demand is broadening beyond the highest-quality buildings as tenants absorb space, pointing to a more balanced environment heading into the final quarter.
Key facts
- Manhattan's office market ended the third quarter with availability continuing to decline, according to the source.
- Class A and Class B availability in Manhattan are narrowing the gap with pre-pandemic levels, according to the source.
- Trophy properties in Manhattan are seeing particularly tight availability conditions, according to the source.
- Demand in Manhattan's office market is broadening beyond the highest-quality buildings as tenants absorb space, according to the source.
- Performance in Manhattan's office market remains uneven across submarkets and asset quality, according to the source.
Manhattan's office market recorded falling availability in the third quarter, with leasing activity strengthening across multiple building classes.
Class A and Class B properties narrowed the gap with pre-pandemic availability levels. Trophy properties showed particularly tight conditions.
The shift indicates demand is broadening beyond the highest-quality buildings as tenants absorb space. Performance remains uneven across submarkets and asset quality.
Availability trends point to a more balanced environment heading into the final quarter of the year.
The market ended the third quarter with availability continuing to decline.
The Deployment Angle
Family Office Real Estate Daily Desk · our analysis, not the source's
The narrowing availability in Class A and Class B stock argues for a Co-GP approach alongside sponsors with in-place tenant rosters in mid-tier Manhattan office. Direct ownership via separate account carries execution risk if the absorption is concentrated in specific submarkets the source does not identify.
Underwrite lease rollover schedules with particular scrutiny. If availability is tightening because existing tenants are expanding rather than new entrants arriving, renewal risk pricing may be too optimistic. Price in the unevenness across submarkets the source flags—submarkets lagging the borough-wide trend will face longer lease-up timelines.
Avoid commitments to broad Manhattan office funds that blend trophy and non-trophy exposure without submarket granularity. The source reports performance remains uneven, which means manager selection and asset-level underwriting matter more than market-level beta. Trophy properties seeing particularly tight conditions may now be overpriced relative to the residual lease-up risk in Class B stock.
