Empire State Building tenants go through real estate crisis

Since the start of the pandemic, much has been written about its effects on commercial real estate, particularly in New York City. With the rise of the delta variant and concerns about the current phase of the pandemic, a number of experts have done their best to reflect on what the future of the city’s real estate market might look like – something that has concerns. wider implications than the future of the office space out.

A new report from The New York Times examines the broader issues facing real estate in the city through the prism of a singular building. Does the Empire State Building face an uncertain future? For a number of reasons, the Empire State Building is facing a perfect storm of pandemic-related crises. Its space includes commercial tenants, ground-floor retailers and observation decks that derive substantial income from visiting tourists – all areas that the pandemic has negatively affected.

The report’s findings include some sobering numbers. As for the observatory, “nearly a million” visited the observatory in the second quarter of 2019. For the second quarter of 2021, that number decreased by 83%, to 162,000 – and that still represented a increase from the first trimester. of this year.

Through interviews and public statements, the Times also learned that 41% of commercial tenants will “adopt a hybrid working model” instead of requiring all employees to work from the desk all the time.

The data set in the report offers a lot of food for thought – and gives a good idea of ​​how companies have responded to the pandemic and what could happen next for a multitude of workplaces.

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