March-April 2025 Newsletter

Midtown Office Market in Real Time | 

Built School Space | Click for Details

As we close out the first quarter of 2025, I wanted to share some strengthening sentiments in the following areas:

1. Sublease space is quietly getting absorbed

The glut that flooded Midtown from 2020 through 2023 is history. It didn’t go in dramatic headlines, but deal-by-deal, building-by-building, and floor-by-floor. The majority of spaces that sat idle for 18 months have either been subleased, pulled, or expired.

We're even seeing it first-hand: a client that hired us in 2024, just decided to pull their space from the sublease market after attendance began to pick up.

2. Formerly “Desperate” landlords aren’t so desperate anymore

The gap between asking and taking rent has narrowed. Concessions are still healthy, but they’re no longer expanding. Landlords who were throwing in the kitchen sink last year are now holding the line—or even saying no. If you’re expecting a 40% haircut or two years of free rent, you’re late. Those deals happened in 2021 and 2022. Today’s market has stabilized—just not in tenants’ favor.

One recent example: a client we represented 16 months ago had 2-3x more options for the exact same requirement we’re working on now. Not only is the menu smaller, the prices are 10% higher. Same need, same location—new market reality.

3. Good space is moving

The stuff that shows well and is priced right isn’t sitting. Multiple tours, quick decisions, and competitive interest are back—for the right product. It’s not just the new construction, “flight-to-quality” stuff; it’s anything with an efficient layout, strong location, and competitive landlord.

4. Capital is tiptoeing back in

Even on the investment side, there’s movement. Eighteen months ago, ‘Midtown office’ was a falling knife for lenders and investors. Now, there’s enough price discovery to underwrite the vacancy and draw a line to profitability. It’s not a wave of activity, but it’s no longer a freeze in the liquity cycle that I touched on back in January.

As the cyclical nature of the Mitown office market continues, our team remains on the streets with a pulse on the market and a stream of real-time updates ready to share.

Until next month,
Ben

Ben Blumenthal
Principal Broker | Noah & Co.

For the rest of our April 2025 Newsletter, click here.