Fri, 31 Jan 2025

New York City office demand is finally back to normal

Demand for New York City office space has finally returned to pre-pandemic levels, driven by an influx of new workers as well as return-to-office policies.

* Demand for New York City office space has returned to pre-pandemic levels, with a 25% increase in demand from last year's fourth quarter.
* This is driven by an influx of new workers and employers encouraging current staff to return to the office.
* Analysts point to the city's unique cultural and economic dynamics, particularly in finance and tech sectors, as contributing factors.
* SL Green Realty Corp., a Manhattan-focused REIT, reported 92.5% occupancy at year-end and projects over 93% leased occupancy for 2025.
* Tech giant IBM signed a 92,663-square-foot expansion lease with SL Green, reaffirming its commitment to the city's technology sector.
* Other cities, such as San Francisco, Seattle, and Chicago, are also seeing growth in office demand, but at slower rates than New York City.
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