2021-03-29 — nytimes.com
``"Going back to the office with 100 percent of the people 100 percent of the time, I think there is zero chance of that," Daniel Pinto, JPMorgan's co-president and chief operating officer, said in an interview in February on CNBC. "As for everyone working from home all the time, there is also zero chance of that.''
The loss of workers has caused the market value of commercial properties that include office buildings to plunge nearly 16 percent during the pandemic, triggering a sharp decline in tax revenue that pays for essential city services, from schools to sanitation.
New York is set to receive significant federal assistance from the $1.9 trillion federal stimulus package: $5.95 billion in direct aid and another $4 billion for schools, a City Hall spokeswoman said. While that addresses immediate needs, the city still faces an estimated $5 billion budget deficit next year and similar deficits in the following years, and a changing work culture could hobble New York's recovery.
The amount of office space in Manhattan on the market has risen in recent months to 101 million square feet, roughly 37 percent higher than a year ago and more than all the combined downtown office space in Los Angeles, Atlanta and Dallas. "This trend has shown little signs of slowing down," said Victor Rodriguez, director of analytics at CoStar, a real estate company.
Only 15 percent of workers have returned to offices in New York City and the surrounding suburbs, up slightly from 10 percent last summer, according to Kastle Systems, a security company that analyzes employee access-card swipes in more than 2,500 office buildings nationwide. Only San Francisco has a lower rate.
At least one industry, however, is charging in the opposite direction. Led by some of the world's largest companies, the technology sector has expanded its footprint in New York during the pandemic. Facebook has added 1 million square feet of Manhattan office space, and Apple added two floors in a Midtown Manhattan building.
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