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Facing limited options, office renters rediscover second- and third-tier buildings

Stabilizing demand, limited premium supply renew interest in these non-trophy properties
Manhattan's One Grand Central Place, an office building rated three stars across 42nd Street from the famed train terminal, has seen its occupancy increase to nearly 90% since mid-2024. (CoStar)
Manhattan's One Grand Central Place, an office building rated three stars across 42nd Street from the famed train terminal, has seen its occupancy increase to nearly 90% since mid-2024. (CoStar)
CoStar Analytics
December 2, 2025 | 7:35 P.M.

Over the past five years, office buildings rated three and four stars have borne the brunt of the massive adjustment in workspace demand. That began to change in the third quarter as occupancy losses came to an abrupt halt in these buildings, possibly signaling the start of a longer, deeper recovery.

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