We've Made It (
A message from Ben Blumenthal) -
New York is open for business!
With the city fresh off its 1-millionth COVID vaccination and a return to normalcy in full swing, the energy of New York is back. The overflow of after-work patrons on the sidewalks of restaurants and bars is a welcome sight, and according to REBNY, broker confidence has reached its highest levels since the pandemic began.
Over the last 2 months, we’ve seen a noticeable change in businesses' outlooks, as C-suite executives enter the office space market with a sense of urgency to get their teams back together.
In just the last several weeks:
- Morgan Stanley announced that all employees are expected back after Labor Day (and must be vaccinated to enter the building)
- Amazon called office workers back 3 days a week starting in September
- Bank of America has asked its employees to return post-Labor Day
While there is no shortage of office availability, the best value-deals in Midtown (ie. plug & play subleases and well-priced direct lease space) have begun to get absorbed, commonly with multiple bidders. On the sublease market, we've seen fewer spaces listed as companies reconsider their previously planned break with the office.
Despite these positive developments, one of the biggest challenges organizations are now facing is how to entice employees to return to the office. Over the last year, many rank-and-file workers have developed new routines and lifestyle expectations, changes that are certainly posing a great challenge for organizational leadership.
As a new era dawns on New York City (along with a new administration soon to move into City Hall), we remain confident in the timeless value and opportunity that New York presents to entrepreneurs and businesses around the world.
Wishing you all the best,
Ben
Ben Blumenthal
Principal Broker
Noah & Co.
For the rest of our May 2021 Newsletter, click here.
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