NYC Office Space to Lose $50 Billion in Value
The pandemic has dealt a severe blow to the value of office buildings in New York City, with a new study estimating that the total value could decline by as much as $50 billion.
The study, from the National Bureau of Economic Research, found that values have already declined by nearly 45% in 2020 and are forecast to remain 39% below pre-pandemic levels. The continued rise of remote work is a major factor contributing to the decline, as more women have entered the workforce and sexual harassment concerns have made many workers protective of their home offices.
This is bad news for landlords and investors, who are facing mounting pressure to adapt their properties for a post-pandemic world. Many experts believe that the office sector will never fully recover, and that the pandemic has simply accelerated a long-term trend towards remote work. For now, though, the value of NYC office buildings remains in free fall.