Pandemic’s Toll on NYC Office Market Will Last Years, State Says
Pandemic’s Toll on NYC Office Market Will Last Years, State Says
(Bloomberg) -- New York’s office market will take years to recover from the pandemic, as employers offer remote-working options and reconsider how much space they need in Manhattan, according to state comptroller Thomas DiNapoli.
Covid-19 has reduced the market value of New York’s office buildings by nearly $28.6 billion and cost the city more than $850 million in property tax revenue for fiscal year 2022, according to a report Thursday.
“When the pandemic hit, companies shifted office workers to remote work, rents fell and vacancies rose,” the report said. “I am optimistic for the sector’s recovery but its short-term future remains uncertain as employers assess future use of the space.”
The amount of office space available in Manhattan hit a record high during the pandemic and rents have dropped. While leasing is rebounding from Covid-19 lows, it’s still far below pre-pandemic averages.
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