NYC Office Leaders Cheer Record Rents, Warn on Rates and Costs

What happened

Commercial Observer held its 2026 State of Office forum on Wednesday at Rudin's 3 Times Square in Manhattan. The outlet reported on the event on 11/05/2026. Landlords, brokers and executives described a strong 2026 office market with record rents, a booming tech sector, months of leasing momentum and low new supply. Speakers also warned about rising interest rates, inflation and declining affordability.

Bruce Mosler of Cushman & Wakefield said demand for top Class A space is spilling over into Class B buildings and parts of downtown. Bill Rudin said his company's 32 Avenue of the Americas had sat empty for a long time. In the last six months, the company signed a 100,000-foot lease and has a 200,000-foot lease out. Edward Forst, administrator of the U.S. General Services Administration, said the federal government wants its top 24 agencies at office occupancy of at least 60 percent. He doubted they would meet that legal mandate by year's end. He also named Mark Weiss of Cushman & Wakefield as GSA's public buildings commissioner.

Panelists said Lower Manhattan is gaining strength. Silverstein Properties' Dino Fusco pointed to American Express's 2 million-square-foot commitment at 2 World Trade Center. RXR's Dan Birney said 32 Old Slip is on track for about 350,000 square feet of leasing this year. L&L Holding's David Levinson said building in New York stays expensive even with tax abatements. He cited union labor costs and heavy bureaucracy.

In a panel on repositioning, repurposing or redeveloping buildings, Keith DeCoster of the Real Estate Board of New York said more owners are now willing to invest in their buildings. He said this is pulling some office buildings out of conversion consideration. GFP Development's Brian Steinwurtzel said he sees opportunity in distressed "zombie buildings" if equity and debt holders are willing to deal. He also said such efforts depend on rents.