Commercial Real Estate Trends in New York City
While New York City’s commercial real estate market suffered throughout the Covid-19 pandemic, it appears to be bouncing back. Between return to office mandates, hybrid work, zoning changes, and renewed investor confidence, commercial development is quickly rising throughout the city.
In the first half of the year, commercial lease volume increased by 42.2% in New York City. Furthermore, in the first quarter of 2025, office vacancy dropped by 16%. However, while the city as a whole has experienced uptick, some neighborhoods are doing better than others. Sher-Del Transfer regularly tracks commercial real estate trends in the city and here are some of fastest-growing ones for office leasing.
Hudson Yards
As a surprise to no one, Hudson Yards continues to be of the most popular neighborhoods for office development. Deloitte, earlier this year, announced that it would be expanding the lease of its North America headquarters at its Hudson Yards location. Furthermore, New York City’s council has also approved $2 billion in funding for development in the area, including office spaces. All of this news follows a $100 million purchase of 411K SF tower for additional development.
Midtown South
Another area that no one should be surprised by is seeing growth is Midtown South. A collier report from Q2 2025 found a 11% increase in office lease demand in the area. A follow-up report from Q3 saw an additional 8% increase. City Council, in August, also approved the Midtown South Mixed Use Plan, which would focus on the development of residential and commercial properties.
North Brooklyn
Once known as a residential-focused area, North Brooklyn has slowly attracted more and more businesses. A Brooklyn Market report from earlier this year North Brooklyn as a leading neighborhood for transaction volume and sales value in development sites & mixed-use properties. Meanwhile, an October report from Optimal Space concluded that Williamsburg has seen over $372 million in retail building sales over the past year.
West Queens
Western areas of Queens, including Astoria, Long Island City, and Sunnyside have also seen increases in commercial office investment. Real estate developers including the Vaja Group and Stellar Management have announced development of mixed-used properties in Astoria this year. Additional permits have been filed for other mixed-use properties in the neighborhood. Meanwhile, zoning reforms and commercial development incentives are expected to further attract business to Long Island City.
These are only some of the neighborhoods in New York City that are seeing commercial real estate growth. If you’re a business looking to move your office space, make sure to reach out to Sher-Del Transfer for a quote.
