Manhattan Office Leasing Surpasses Historical Averages in Q3 2026

In the third quarter of 2026, Manhattan's office leasing activity reached 10.06 million square feet, surpassing both the five-year and 10-year quarterly averages, according to data from Commercial Observer ¹. This uptick in leasing volume signals a robust market, even as the number of new deals experienced a slight decline.

Meanwhile, the Washington, D.C. office market exhibited stability, with approximately 1.8 million square feet leased in Q3 2026. This figure aligns with the five-year quarterly average but represents a decrease from the previous quarter's total of 2 million square feet ⁴. The mixed performance in D.C. reflects a growing divide between trophy properties and the broader market, indicating varying demand levels across different segments.

In the Bay Area, Airbnb has made a notable move by signing a lease for 122,958 square feet at 850 Brannan St. in San Francisco during the same quarter. This lease marks a significant rebound for the company, which had previously downsized its office space ². The expansion suggests a strategic shift as Airbnb looks to solidify its presence in the office market.

Additionally, in Southfield, Michigan, AT&T secured a substantial office lease of 157,642 square feet at Travelers Tower II, as negotiated by Newmark ³. This lease highlights ongoing demand for large office spaces in the region, reflecting a continued interest in significant commercial real estate commitments.

Overall, the office leasing landscape in key markets shows signs of resilience and adaptability, with varying trends across different regions and companies. As businesses reassess their office needs, the market dynamics continue to evolve, presenting both challenges and opportunities for stakeholders in the commercial real estate sector.

Sources

1. Commercial Observer — Manhattan’s Available Office Supply Falls to Lowest Level Since 2020: Colliers
2. The Registry (Bay Area) — Airbnb Signs 123,000 SQFT New Lease at 850 Brannan St. as Its San Francisco Rebound Gathers Speed
3. REBusinessOnline — Newmark Negotiates 157,642 SF Office Lease for AT&T in Southfield, Michigan
4. Commercial Observer — Google Relocation Leads D.C.’s Office Market in Q3