Manhattan is observing rising office vacancy rates.
A report from Newmark covering the downtown Manhattan office real estate market during the second quarter of 2021 indicated that despite plummeting rental prices, the availability rate for businesses reached 21.1% in June — a record high. Reports for Midtown and Midtown South reveal similarly high vacancies.
The New York Times comments:
No other city in the United States must confront the changing workplace more so than New York, whose offices, before the pandemic, had attracted 1.6 million commuters every day and helped sustain a swath of the economy, from shops to restaurants to Broadway theaters. The pandemic has also placed enormous pressure on the commercial real estate sector, a pillar of the New York economy, as landlords rush to redesign offices and dangle incentives like lower rent to retain and attract companies.
Commercial districts across the country are struggling, but office towers in Manhattan continue to empty out even as other cities, including Atlanta and Los Angeles, show signs that they have moved beyond the worst of the pandemic.