According to CBRE’s Q1 2022 figures for Manhattan's Midtown, Downtown and Midtown South office markets, leasing activity climbed by nearly 100% year-over-year.

Manhattan overall saw 5.68m sq ft of leasing activity, up 96% from Q1 2021. Leasing was slow in January and February due to the Omicron surge, but tenants returned to the market in force in March, helping to drive a strong finish to the quarter and creating optimism about the market regaining momentum in Q2.

Financial services and the tech sector continue to drive activity, according to CBRE. “High-quality new construction and renovated buildings continue to see the most interest from tenants, and we expect the flight to quality trend to pick up as leasing momentum builds this year,” commented Nicole LaRusso, senior director of research and analysis, US North Region.

According to the CBRE report, Downtown is on the road to recovery. The market posted 884,000 sq ft in leasing activity during Q1, the second-highest total since Q1 2020 and 97% greater than the same time last year.