As a result, large employers like Condé Nast and JPMorgan Chase have given up on chunks of office space, contributing nearly 19% of Manhattan office space available for rent, according to Newmark, a real estate services company, nearly double the average rate. over the past decade.
About 28% of office workers in the New York City area, which includes parts of New Jersey, Connecticut and Pennsylvania, had returned to the office last week, more than double the rate from a few months ago , according to Kastle Systems, a security company that tracks employee cards in office buildings. The national average was 33.6%, Kastle said.
Kate Lister, president of Global Workplace Analytics, a consulting firm advising companies on their return-to-office policies, said hybrid work will remain a permanent feature of the work culture after the pandemic.
Office space isn’t going to go away, but, added Ms. Lister, “The total space is going to shrink.”
Yet New York City officials have sought to present Google’s announcement as a sign of the city’s rebound.
“This Google announcement is further proof that New York’s economy is recovering and rebuilding,” Democrat Governor Kathy Hochul said in a statement. “We are creating jobs, investing in emerging industries, raising New Yorkers, and together we are making our comeback story.”
Mayor Bill de Blasio called the deal a “historic investment in New York”. The transaction was first reported by the Wall Street Journal.
When the St. John’s building opens after construction is completed in mid-2023, Google will have more than 3.1 million square feet of office space in New York City, making it one of the of the largest tenants in the city.