March leasing shows a two-track Manhattan office market: Midtown South picks up while trophy Midtown sets price headlines

March office leasing data and early-April coverage in The Real Deal suggest Manhattan is operating on two tracks: Midtown South is seeing renewed leasing momentum tied to AI and tech demand, while trophy Midtown properties continue to command the market’s pricing headlines.

Midtown South benefited in the period from deals highlighted by the publication, including Clay’s lease at 11 Madison, which the coverage cites as an example of demand gravitating to that submarket.

At the same time, trophy Midtown towers dominated price reporting, with Stefan Soloviev’s activity around 9 West 57th serving as a recent benchmark that captured headlines on pricing—even as it may reflect a narrow segment of the market.

The juxtaposition of stronger deal flow in Midtown South and headline pricing in trophy Midtown points to a bifurcated market within Manhattan: occupancy and tenant mix are changing beneath the surface, even as headline rents and record-setting transactions remain concentrated at the top end.

Observers caution that these signals do not amount to a broad recovery: vacancy, sublease supply and the durability of AI-driven demand remain uncertain, and more data will be needed to determine whether the current patterns are sustained.