Office building owners are grappling with significant challenges in the post-pandemic market, particularly in New York City. The widespread use of remote and hybrid work arrangements has significantly stalled the return-to-office efforts of office tenants and led to continually high office vacancy rates, which, according to the New York City Comptroller’s Office, roughly doubled between early 2020 and mid-2024.

While year-to-date vacancies have recently started to decline in major commercial corridors throughout the city, newer, Class A and trophy buildings were the primary drivers of the recent uptick in leasing activity.