According to reports released Thursday, the amount of office space available for lease in Manhattan has reached its highest rate ever, with 18.7% of all office space now available for lease. This surge in available office space is a result of the sudden shift to remote work during the coronavirus pandemic, which is causing companies to reevaluate their space needs. Many New York employers are offering more flexibility to their workforce, allowing some remote work even as the pandemic recedes. As a result, companies are either ending their leases or seeking tenants to take over their existing leases at a steady pace. Neighbourhoods like Downtown Manhattan are particularly struggling, with 21% of offices currently unoccupied. Kathryn Wylde, the president of the Partnership for New York City, a significant business organization, stated that New York City is currently experiencing its most significant crisis since the 1970s when half of the city's 125 Fortune 500 companies relocated. Wylde emphasized the urgency of the situation, comparing it to the past exodus and lengthy recovery the city faced. She stressed the need for the city to find ways to attract people beyond just working in the office. New York City's situation is unique in the United States due to its heavy reliance on office commuters, who before the pandemic numbered 1.6 million daily and supported various sectors of the economy. The pandemic has also resulted in significant challenges for the commercial real estate sector, a key component of the city's economy, leading landlords to revamp office spaces and offer incentives like reduced rent to retain and attract businesses. Commercial property accounts for the largest share of New York City's property tax revenue at 41%. Commercial areas in various cities are facing challenges, with office buildings in Manhattan experiencing a continuous decrease in occupancy. Despite some cities like Atlanta and Los Angeles showing improvement post-pandemic, New York's vacancy rate remains higher than the national average. Other cities such as Los Angeles and Chicago are also struggling to fill their office spaces, with vacancy rates exceeding those of New York before the pandemic. There are concerns that the situation in New York may further deteriorate. According to CBRE, a third of leases at large Manhattan buildings will expire in the next three years, leading to a decrease in demand for office space. The availability rate in New York City is currently at its highest level since the mid-1970s. Franklin Wallach from Colliers predicts that the amount of available office space in Manhattan will continue to increase due to ongoing construction and relocation plans. There is currently 14 million square feet of office space under construction in New York City. Wallach also suggests that the office market in Manhattan will recover unevenly, similar to the broader economic recovery. Neighborhoods near major transportation hubs like Pennsylvania Station and Grand Central Terminal may recover faster than other parts of Manhattan, according to Wallach. While the overall market will eventually bounce back, the timing and specifics of the recovery will vary depending on location. Savills predicts that the Manhattan office market may not fully recover to pre-pandemic levels until late 2022 or later. A survey by the Partnership for New York City found that only 12% of office workers had returned to Manhattan by the end of May, with over 60% expected to return in September. However, many companies are allowing employees to work remotely for at least part of the week. Throughout the pandemic, the technology sector has been the only industry to sign significant leases in New York, with companies like Facebook and Google well-equipped to transition to remote work. Facebook's CEO, Mark Zuckerberg, announced in June his intention to work remotely for half of the following year. Wylde noted that the tech sector's growth seems to be short-lived, with employees demanding permanent options for remote work or a hybrid schedule. Workers are expressing their desire to avoid expensive leases in cities like New York by working from home or remotely. Wylde suggested that cities are becoming more competitive due to the pandemic and the rise of remote work, emphasizing the need for a shift in public policy towards prioritizing quality of life, a positive business environment, and affordability.