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Manhattan Office Rents Have Room to Fall Even as Workers Return

  • Market is swamped with space from tenants seeking to cut back
  • Pressures on New York landlords seen continuing into next year
Manhattan’s office skyscrapers, largely empty since March 2020, are set for a broader return of workers in coming months.
Manhattan’s office skyscrapers, largely empty since March 2020, are set for a broader return of workers in coming months.Photographer: Michael Nagle/Bloomberg

A year after the pandemic emptied out Manhattan, the office market has yet to reach rock bottom.

Even as companies look to bring workers back, the amount of office space available in the borough is at its highest level in at least 30 years. And rents have fallen for five straight quarters, according to the commercial brokerage Savills. As many tenants continue to re-evaluate their needs for physical offices, the pressures on the market will stretch at least into next year.