Office rents at Manhattan skyscrapers set to reach new heights in 2026
The sky’s the limit for Manhattan skyscraper office rents, after 2025 saw a record 313 leases starting at $100 per square foot.Some industry insiders said new rents up to $250 are within reach — but also cautioned the C-Note bubble could burst.The $100-and-up deals were done at 125 buildings, compared with the 2024 tally of 85, according to JLL’s year-end Analysis of Top Tier Transactions.
The total volume of 9.9 million square feet done at such prices narrowly topped 9.8 million the previous year.JLL declined to discuss specific tenants.But outside brokerage sources told Realty Check that SL Green’s One Vanderbilt scored the highest price on a per-square-foot basis for the second year in a row.
Kyndryl, an infrastructure service provider, signed for a mind-boggling $305 psf for a minuscule 6,300 square feet.The super-priced phenomenon rests on tenants’ desire for premium digs with high-floor views at any cost.It also reflects the robust commercial scene where strong demand and diminished supply reduced overall Manhattan availability from nearly 20% a year ago to 13.2%, as per JLL -– and much tighter on Park Avenue, the World Trade Center, and in the Hudson Yards area.“The volume of $100-plus deals represents one-third of all Manhattan lease signings in 2025,” said JLL vice chairman and research head Cynthia Wasserberger, who wrote the report with Margaux Kelleher.Tech, media and information industry companies dominated with 31% of all top-tier transactions.“Rental premiums are being driven by extreme scarcity of supply, costs of new construction, and a rising-tide effect, while concessions such as free rent and tenant improvement and interior buildout contributions remain healthy,” Wasserberger said.
“It is not a stretch to assume that more top-tier buildings will seek rents in the $200+ range more frequently in 2026.”The once-elusive $100 benchmark became the norm at premium locations in 2025.Top-tier rents start at least 15% pricier th...