49% Of New York Office Workers To Return By January 2022

USA – A new survey of 188 major employers in New York shows that slightly over a quarter or 28 percent of office workers in Manhattan have returned to their workplace at present, reported CNBC on Thursday morning (11 November, SGT).

Come January 2022, 49 percent of staff are expected to return to their offices on an average weekday, based on the study conducted by Partnership for New York City. However, the research indicates that working from home (WFH) would persist long after next January negatively impacting demand for office space in the Big Apple.

According to the survey, over 33 percent of employers believe that their workspace requirements in Manhattan would fall in the next 5 years, while 13 percent expect to reduce their manpower in New York City.

“Post-pandemic, remote work is here to stay. There is going to be a permanent relook at keeping offices and jobs in New York City,” said Kathryn Wylde, CEO and president of top business group Partnership for New York City.

The survey suggests that by January 2022, only 13 percent of staff in Manhattan are expected to be in their office 5 days per week. 33 percent will be in their workplace 3 days a week, 15 percent 2 days per week, while 7 percent will only spend 1 day per week. On the other hand, 21 percent will work full-time from home.

By sector, the highest expected average daily attendance next January will be seen by the property industry at 80 percent, followed by law firms (61 percent) and financial institutions (47 percent). Conversely, those with the lowest are accounting (36 percent), consulting (30 percent) and tech firms (24 percent).

Currently, the vacancy level of office space in New York City has reached 18.6 percent – the highest in around 3 decades. Also, the value of commercial properties there has declined by 16.6 percent or US$28.6 billion.

Although developers and office landlords insist that rental activity remains healthy and staff will return to their workplaces, many employers think that New York City’s high costs, pricey taxes, and long commutes could delay any recovery in the commercial real estate segment.

For instance, 22 percent of financial companies intend to slash their workforce in New York City over the next 5 years, added Wylde.

“The danger is that when the high earners leave, they take operations with them. We hear now of operations in asset management and other areas, not just individual high earners, but the real business operations moving to Texas, to Tennessee, to Florida.”