Manhattan’s office market showed renewed absorption in the latest quarter, and recent reporting highlights that AI-focused firms are becoming a tangible factor in demand rather than a peripheral story.

As reported, Harvey AI has taken space at 1 Madison Avenue, a high-profile example cited by market watchers of an AI firm committing to traditional Midtown office real estate.

Market notes from The Real Deal and the FNYR weekly market report point to broader AI-related leasing totals across Manhattan, saying those deals contributed meaningfully to recent leasing activity and helped lift quarterly absorption figures.

While the trend does not yet imply a structural market shift, the concentration of AI tenants in several recent leases—anchored by the Harvey AI transaction at 1 Madison—indicates the sector is an increasingly material source of demand for Manhattan offices, according to the reports.

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