The Manhattan office leasing market continues to demonstrate robust demand, with a notable decrease in available space. According to Cushman & Wakefield, direct availability in 32 trophy towers has dropped to 1.7 million square feet, or 4.4% of total inventory, down from 3.5 million square feet in the first quarter of 2025. This trend is largely driven by growth in the technology sector, particularly in artificial intelligence. In May, leasing volume reached 3.02 million square feet, which is 43% above the five-year monthly average and only the second instance since 2019 of surpassing the 3 million square feet mark in a single month. Key transactions included Versant Media's 249,054 square-foot renewal and expansion at 229 W 43rd St. and Cleary Gottlieb's 475,000 square-foot renewal at One Liberty for another 20 years. The market is expected to tighten further, as no new office buildings are anticipated to be available for several years, indicating a strong and competitive leasing environment in Manhattan.