for Bloomberg: New York’s Selective Return to Office Is a Problem by José A. Alvarado Jr.

News

for Bloomberg: New York’s Selective Return to Office Is a Problem

josé a. alvarado jr.

May 22, 2025

Summary

Amenity-rich buildings are filling up fast, with landlords already pointing to a supply crunch. Older spaces are unloved.

New York City encapsulates the two-sided recovery of the US office market currently underway. Millions of square feet of antiquated office space await repurposing or demolition across Manhattan, while trophy buildings in Midtown are full. At a time when the city is trying to address its long-running housing shortage, it will soon run into the additional challenge of creating more of the kinds of office space that employers and workers want.

Corporate tenants have shown a clear preference for the best buildings in the best submarkets — partially because it’s what they need to convince employees of the importance of the in-office environment, and partially because it’s risky to take space in a half-occupied older building with an owner who may face foreclosure in the future. Rents in good-quality buildings have the potential to surge over the coming years, which is why Blackstone Inc. is close to buying an office tower in Midtown. Office real estate investment trusts that hold prime properties look increasingly well positioned, with rising occupancy rates and access to financing to take advantage of distress elsewhere.

Photographed for Bloomberg, with words by Conor Sen.

https://www.bloomberg.com/opinion/articles/2025-02-03/new-york-s-selective-return-to-office-is-a-problem

224

José A. Alvarado Jr.

Also by José A. Alvarado Jr. —

for The Minnesota Star Tribune: A Columbia professor’s warning for the University of Minnesota

for The New York Times: Columbia Concedes to Trump

for The New York Times: ICE Can’t Enter Rikers for Now, Judge Rules

for The New York Times: Outside Official Will Take Over Deadly Rikers Island Jail, Judge Orders

for The New York Times: Officer Pleads Guilty in Fatal Beating of Prisoner Seen on Camera

for Bloomberg: Caribbean Worried About Impact of Fines on China-Made Vessels

for Bloomberg Law: Blue Owl’s Legal Chief Surges to Top-Paid Among Asset Managers

for Bloomberg: NYC Office Buildings See Resurgence as Investors Pile Into Bonds

for Bloomberg: KKR Veteran Joins Blue Owl to Lead Global Family Office Push

for Bloomberg: JPMorgan’s Former ‘Punch Card’ Building Unveils $10,000 Rentals

for NPR: This Harlem pastor fights mental health stigma — and shares his own struggles

for NPR: This Black church is facing the teen mental health crisis head on

for The New York Times: A Black Studies Curriculum Is (Defiantly) Rolling Out in New York City

for The New York Times: How a Plan for Reparations Became a Debt Trap for Marijuana Retailers

for STAT News: What happens when a rare disease drug seems to work, but the health care system doesn’t?

for El Nuevo Dia: Mujer del Año 2024

for NPR: Cancer interrupted their school lives, but also set them on a mission

for NPR: In New York, immigration weighed heavily and divisively among immigrants themselves

for The New York Times: He Was One of New York’s Busiest Shoplifters. His Mother Was a Cop.”, The New York Times

for The New York Times: Home Sales in Flood Zones Are Booming. Here’s Why Buyers Take the Risk.

for The Wall Street Journal: The King of Risky Hometown Bonds Is Back

for The Wall Street Journal: The Office Therapist Will See You Now

for DVEIGHT: A Conversation with Ray Turner

for The New York Times: The U.S. Open Is Busier Than Ever. Some Fans Are Not Happy About It.