NYC Offices to See $50 Billion in Value Wiped Out, Study Says
Researchers estimate the value of the city’s stock of office buildings will remain well below pre-pandemic levels given the rise in remote work.
The Manhattan skyline along the East River in New York.
Photographer: Ismail Ferdous/BloombergNew York office buildings are facing a potential $50 billion wipeout of value thanks in part to remote work.
The values of those properties declined nearly 45% in 2020 and are forecast to remain roughly 39% below pre-pandemic levels due to the persistence of flexible work policies that gained traction during the crisis, according to a new study from the National Bureau of Economic Research.
As the Covid-19 pandemic shuttered office buildings and forced people to switch to a remote work environment, many offices sat vacant and still do, even as companies try to entice employees to return. Roughly 46% of workers in the New York metro area were back at their desks in the week ended Sept. 21, according to card-swipe data from Kastle Systems.