New York Office Market Report
Workers Filter Back into Offices;
Wave of New Top-Tier Assets on the Horizon
Having weathered omicron headwinds, recovery back on track. Office usage as of May stood at 38 percent of pre-2020 counts based on a Kastle Systems utilization survey, exceeding pre-omicron figures and the highest measure since the onset of the pandemic. While health concerns are subsiding, changing workplace strategies could reshape leasing moving forward. As of April, 78 percent of the city's traditional office-using employers have plans to implement hybrid workplaces, up from 6 percent before the appearance of COVID-19. With less workers expected to be in the office full time, many tenants may favor smaller floor plans and spaces that offer greater flexibility than a traditional office environment.