The pandemic’s impact on New York City’s office market might be worse than anyone thought.
The coronavirus erased years of growth in the city’s office sector, and, along with it, $28.6 billion in market value and more than $850 million in property taxes in the city’s 2022 fiscal year, according to a report from New York State Comptroller Thomas DiNapoli.
“When the pandemic hit, companies shifted office workers to remote work, rents fell and vacancies rose,” DiNapoli said in a statement. “I am optimistic for the sector’s recovery, but its short-term future remains uncertain as employers assess future use of the space. The city should closely monitor trends in the sector and consider the future impact on tax revenues.”
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