New York occupancy breaks 50% for first time since pandemic hit

OFFICES in New York City crossed the 50 per cent threshold last week for the first time since the Covid-19 pandemic eviscerated the local economy at the start of the outbreak.

Building occupancies in the New York metro area hit 50.5 per cent of pre-pandemic levels in the week ended on Wednesday (Jun 7) according to data from security firm Kastle Systems, up 4.2 percentage points from the week before.

The milestone came just as the city was engulfed in smoke from Canadian wildfires, briefly becoming the most polluted major city in the world. Some of New York’s largest employers from big tech to big law to Wall Street have tightened return-to-office mandates in recent weeks, ramping up requirements and enforcement.

While sure to be welcome news to Mayor Eric Adams, who has long lobbied for a return to offices, the boost may just be a blip. Kastle’s national index, which tracks building occupancies in 10 major metro areas, plateaued for six months after breaking the 50 per cent mark in January. Remote work’s enduring popularity has pummelled New York’s economy, costing the city more than US$12 billion a year, according to a Bloomberg analysis.

The data are based on average weekly key card swipes at buildings with Kastle security systems compared with a pre-pandemic baseline. Other cities, like Washington, DC, and San Francisco, have yet to break the 50 per cent mark. BLOOMBERG