It is clear workplaces are adopting a hybrid model, allowing remote work, cutting back on the need for office space. Office vacancies in Midtown and the Financial District, New York’s most commercial areas are at an all-time high.
Taxes on commercial property count for roughly 20% of New York’s tax revenue. The city will take a drastic hit on tax revenue as commercial property values drop or, like many poorly managed cities, raise tax rates to make up for the difference. It does not make for a positive outlook.
Cuomo’s plea to businesses to force employees back to the office did not work. Companies realized that they can be productive even if their employees worked from home. They’re not going to want to abruptly go back into their commutes as an act of charity for New York.
The real solution is to continue to expand the economic base and attract residents and visitors for reasons other than their office.
At GE Grace we believe New York will always be a hub for top talent, and a location for creative collaboration. If you need space, now is a great time for leasing. Call us at 646 312 6800 or email Grace@GEGrace.com.