---
title: May 2025 Newsletter
description: "Midtown Office Update: May 2025 - In Manhattan, everything clears at a price"
---

[Office Space Blog ](https://www.noahre.com/blog)

# [May 2025 Newsletter](https://www.noahre.com/blog/may2025newsletter)

 Written by [Ben Blumenthal](https://www.noahre.com/blog/author/ben-blumenthal) | May 28, 2025 3:51:25 PM

## Midtown Office Market in Real Time | 

[Built School Space with CO | Click for Details](https://www.noahre.com/hubfs/Marketing/LSS%20Marketing%20Flyer%20-%20180%20Amsterdam%20Avenue%20(Entire%202nd%20and%203rd).pdf)

**💸 *****Mid-Block Manhattan Is Resetting… and Clearing***

In the **Garment District**, pre-war mid-block office buildings are continuing to trade (for sale) in the $180-$300 PSF range depending on exact location, condition and how much base building needs to get done with office rents ranging from $30-45 PSF. Some owners are keeping the building's as offices, investing in modest upgrades to attract value-seeking tenants. Others are flipping the use entirely and going residential, especially if the floorplates and light lines work. Either way: the bid-ask spread is narrowing and the product is moving.

**🤝 *****Flex-Space Consolidates—but Pricing Is Up***

We’re seeing **fewer operators**, but **stronger ones**, and they’re commanding more. As the flex-space market tightens, **pricing is rising**, especially for smaller <10 person teams. Some coworking deals are moving at lightning speed (we closed one same-day this spring), which speaks to the operational efficiency tenants now demand and the providers still in the game are absorbing demand at higher margins.

**🚆 *****Hot Pockets: Grand Central’s Quiet Heat***

The **Grand Central submarket** is quietly red-hot. Occupancy is well above **90% in most buildings, and if you find a building that isn’t, it’s probably a sign to stay away**. Location, proximity to transit, and in-place tenant stability are creating a small scale flight-to-convenience for tenants.

**💥 *****The Bailouts Are Here—If You Held On***

This month, the thesis became reality: **owners who held on are finally getting saved**. Either through:

- **Recaps/Refis** (like most of the RFR Realty portfolio),
- **Sales** (522 Fifth, 452 Fifth, 320 Park, 1345 AofA partial stake)

Capital is flowing again, but only into assets where pricing & potential finally align.

**💡 Final Take**

Midtown’s recovery isn’t headline-grabbing—but it’s happening. The key isn’t optimism. It’s *math*. When the basis resets and the rent rolls reflect reality, deals clear. And that’s exactly what we’re seeing.

Until next month,  
Ben

**Ben Blumenthal  
**Principal Broker | Noah & Co.

For the rest of our May 2025 Newsletter, [click here](https://info.noahre.com/newsletter/may2025).

[View full post](https://www.noahre.com/blog/may2025newsletter)

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