Office Market Discussion

[s211]

Originally Posted by whatnext

Not surprisingly Facebook floated that. Could they get any slimier?

Interesting article on how few are returning to Manhattan offices, even as they reopen:

...Since the lockdown began in March, financial firms have eschewed their option as essential businesses to bring more staff into their offices. Hopes that the city’s phased reopening would inspire a quick rebound of the bustling economy are running into the realities that big companies are going to be cautious. In a recent workplace survey of 60 companies conducted by the Partnership for New York City, employers said they only anticipate having 10% of employees back by Aug. 15. By year-end, they expect just 30%.

Many firms have been pleasantly surprised at employees’ ability to work remotely and some want to avoid putting a strain on public transit with workers who don’t have to be in the office. Companies are also taking time to retrofit spaces for social distancing, or upgrade air-conditioning systems and bathroom hand dryers. Employers including BlackRock Inc. plan to require mandatory training for staff returning to offices...

...The delay in returning workers to offices may augur a more permanent reckoning for New York office space. In a survey, the Partnership for New York City and Newmark Knight Frank found that roughly 37% of finance companies said they plan to decrease the space they occupy in the city by 20% or more. About one-fifth of professional services firms said the same. And more than a quarter of financial services companies plan to relocate jobs to the suburbs or other locations, the highest share of any industry...

https://www.bloomberg.com/news/articles/...pening?srnd=premium-canada&sref=x4rjnz06

The two top tenant rep brokers for Manhattan were on a webinar earlier today and confirmed the 10% occupancy in the next short while and 25% by year-end if they're lucky. The major constraint isn't corporate policy but employee issues with mass transit.