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Strong demand and large leases kick off 2026
Robust leasing momentum carried into early 2026, with 12.4 million square feet (msf) leased in Q1, up 10.5% from the previous quarter and marking the strongest single quarter of leasing since 12.7 msf in Q4 2019. Leasing demand continued to highlight the market’s bifurcation by quality, with activity concentrated in Class A and trophy buildings. Midtown accounted for roughly two-thirds of quarterly leasing, driven by Bank of America’s 2.2-msf renewal and expansion at 1 Bryant Park. Midtown South leasing rose nearly 60.0% over the quarter, driven by rising AI activity in the Park Avenue South submarket. Downtown was quieter amid a lack of large deals, though American Express’ commitment to develop and occupy nearly 2.0 msf at 2 World Trade Center underscores long-term confidence in the district.