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.
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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.
