There’s a major disconnect in New York City’s office market right now.
On one hand, the numbers are explosive. Forbes reports that NYC office leasing just hit a 23-year high, totaling 8.5 million square feet in Q3 2025, the strongest quarter since 2002. Financial services and tech firms are spearheading a significant shift towards quality, directing over 82% of all leasing activity towards Class A and Trophy buildings, as companies strive to provide teams with an office worth the commute.
But the economics behind these deals have shifted.
As CRE Daily recently noted, tenants no longer want a check for a tenant improvement allowance. They’re demanding fully built-out, turnkey space that’s move-in ready from day one. Nearly 70% of Manhattan tenant requirements now specify “turnkey” or “plug-and-play,” a sharp reversal from pre-pandemic norms.
The burden of funding those high-end build-outs has fallen squarely on landlords, and the math doesn’t add up:
$212 per square foot: The average cost of a high-end NYC fit-out (Cushman & Wakefield, 2025).
$145 per square foot: A typical “generous” landlord allowance in prime Class A space (CBRE, 2023).
$67 per square foot: The unfunded gap that has to be paid before anyone moves in.
On a 50,000 SF lease, that’s a $3.35 million shortfall. Cushman & Wakefield reports that landlords are already delaying or scaling back build-outs because of rising construction and financing costs, creating friction in deal velocity and making it harder to close transactions.
This is precisely why we built Dolfin.
We believe the way you finance your space should be just as modern and flexible as the space you’re creating. Our platform separates TI financing from the lease, allowing both landlords and tenants to close deals faster without draining cash reserves.
Here’s how Dolfin helps bridge the gap:
Unsecured, Long-Term Capital: Financing from $2M to $300M+ with no liens, no collateral, and no restrictive covenants.
Flexible, Aligned Terms: 10–20+ year amortization that matches the life of your lease, not your cash flow cycle.
Attractive, Fixed Rates: Competitive rates (6–9% for investment-grade credit) that bring predictability to budgeting.
Full-Scope Funding: Covers the entire project (build-out, FF&E, tech, and soft costs) in a single capital solution.
Capital Recapture: Turn existing leasehold improvements and FF&E into cash on your balance sheet.
Speed and Simplicity: Close in 30–60 days, running alongside your lease negotiation so you don’t lose momentum.
With leasing activity hitting new highs and construction costs continuing to climb, deals that get done today are the ones with flexible capital behind them.
For landlords, that means offering turnkey spaces without depleting reserves.
For tenants, it means financing the gap and creating space that attracts top talent without using working capital.
If you’re navigating the new world of tenant improvements, we’d love to talk.
