Manhattan Office Availability Falls as Leasing Outruns the Summer Baseline
CBRE says August leasing exceeded the five-year monthly average, but higher asking rents and uneven demand complicate the commercial-property rebound.
By Isabella Morales · September 23, 2026 · 3 min read
NEW YORK — Manhattan's commercial-property market entered the fall with less office space on offer and another month of positive absorption, a sign that tenants are taking more space than they are giving back. Brokerage CBRE reported 2.24 million square feet of leasing in August, 4% above the five-year monthly average. The islandwide availability rate fell to 13.7%, down 3.3 percentage points from a year earlier.
The decline is meaningful for owners weighing renovations and lenders assessing buildings, but it does not imply that every tower has regained pricing power. Year-to-date leasing totaled 20.11 million square feet, 2% below the prior year's pace, according to CBRE. The average asking rent was $80.05 a square foot, roughly unchanged from July and 3% higher than a year earlier. Those are asking figures, not the effective rent after concessions and construction allowances.
August net absorption reached a positive 1.01 million square feet, bringing the year-to-date tally to 7.59 million, CBRE said. Renewals accounted for 832,000 square feet in the month, a reminder that retention can be as important as new tenant arrivals. Sublease availability remained at 2.4%, while average asking rent for that space was 2% below its year-earlier level at $58.44 a square foot.
The data describe a market tightening in aggregate, not a uniform recovery by age, location or building condition. Tenants can still distinguish between upgraded space and older offices that require substantial investment. The next question is whether demand stays strong enough to support effective rents and property values once leasing incentives, financing costs and building expenses are counted.