Reports released on Thursday indicate that while some companies are getting ready to bring back employees to their offices, the amount of office space available for rent in Manhattan has reached a record high. This trend highlights how the sudden shift to remote work during the coronavirus pandemic is disrupting the city's commercial real estate industry. In Manhattan, which houses the two largest business districts in the country, 18.7% of all office space is currently available for rent, a significant increase from the end of 2020 and more than double the rate before the pandemic. Many New York employers are now offering more flexibility to their employees by allowing remote work, even as the pandemic eases, and are reassessing their space requirements. Consequently, companies are either terminating their leases or looking for new tenants at a consistent pace. Some areas, like Downtown Manhattan, are experiencing more challenges, with 21% of offices currently vacant, according to Newmark, a real estate services company. Kathryn Wylde, president of the Partnership for New York City, stated that New York City is currently experiencing its most significant crisis since the 1970s, when half of the city's Fortune 500 companies relocated. She emphasized the importance of attracting people to the city for reasons beyond just going to the office. New York faces unique challenges in adapting to the changing workplace, as it previously relied on a large number of daily commuters to sustain its economy. The pandemic has also put pressure on the commercial real estate sector, a key component of the city's economy. Landlords are now making efforts to redesign offices and offer incentives like lower rent to retain and attract companies. Commercial property taxes are a major revenue source for New York City, making up 41% of the total. Commercial areas in various parts of the country are facing challenges, with office buildings in Manhattan particularly emptying out even as some other cities like Atlanta and Los Angeles begin to recover from the effects of the pandemic. Though New York's vacancy rate was higher than the national average at 16.2% in March, other cities are also struggling to fill their office spaces. Los Angeles has a vacancy rate of 24.1% and Chicago's rate is 21.9%, both higher than their pre-pandemic rates. There are concerns that the situation in New York may deteriorate further. According to CBRE, around one-third of leases in large Manhattan buildings will expire in the next three years, and businesses have indicated they will require less space. The availability rate in New York City is currently at its highest level since the 1970s, when the city faced a financial crisis and the iconic Twin Towers were being built. Franklin Wallach of Colliers predicts that the amount of available office space in Manhattan will continue to increase due to ongoing construction and company relocations. Approximately 14 million square feet of office space is being built in New York City, which is double the size of Orlando, Florida. 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 quicker than other areas of Manhattan, according to Wallach. While Savills predicts that the Manhattan office market may not fully bounce back until late 2022 or later, only 12% of office workers had returned to their desks by the end of May. The Partnership for New York City estimates that more than 60% of workers will return in September, but many companies will continue to allow remote work at least a few days a week. Throughout the pandemic, the technology sector has been the only industry signing significant leases in New York, with companies like Facebook and Google being well-equipped for remote work transitions. Facebook's CEO, Mark Zuckerberg, announced in June his plan to work remotely for half of the following year. Wylde noted that the tech sector's rapid growth seems to be temporary, as employees are now pushing for the option to work from home or on a hybrid schedule permanently. They are expressing their desire to avoid expensive city living costs and are seeking a better quality of life in other cities. This shift in work culture may require a change in public policy to prioritize quality of life, a favorable business environment, and affordability.