14% of office space in Midtown Manhattan is vacant. Many office workers are working remotely.
Scott Rechler, chief executive of RXR Realty believes remote work is here to stay. As a result, RXR is proposing that the state and city make it easier for developers to convert Midtown offices to residences.
Converting offices to residences would not only help the landlords of these buildings, it will also help retail – as the residents would increase daily foot traffic.
The conversion is not easy and could take years as landlords wait for office tenants to vacate. Zoning restrictions and tax breaks for landlords would be needed. Similar ideas are being proposed to convert hotels to housing.
We are seeing changes in the New York market. Contact GE Grace for expert insight into your office lease and find out what your landlord is planning. Call us at 646 312 6800 or email Grace@GeGrace.com.