Manhattan Office Visitation Sees 15% Increase In December, Still 22% Below 2019 Levels

In an encouraging sign of recovery, the number of visits to Manhattan office buildings experienced a 15 percent increase compared to the previous year's figures, as reported by the Real Estate Board of New York. However, despite this uptick, the data reveals that the overall visitation count remained more than 22 percent below the levels recorded in 2019.

An analysis conducted by the trade group, representing brokers, building owners, managers, and developers in the city, indicates that the average visitation during December fell short by 33 percent compared to 2019. Nevertheless, this marked an improvement from the previous year, when visits were trailing by 41 percent compared to the pre-lockdown period.

Cautious optimism can be drawn from the fact that December's visitation figures were dampened by the holiday week. Excluding this week's impact, the average visitation rate for the month would have stood at 74 percent of 2019's level. Furthermore, this rate would have also outperformed the 73 percent visitation rate recorded during the first 17 weeks of the previous year.

Changing Trends in Office Visits Reflect Shift in Workplace Culture

The landscape of office visits in Manhattan has seen significant changes in recent months. According to data compiled by Placer.ai and analyzed by REBNY, December 2021 witnessed a total of 13.7 million visits to 350 office buildings in the area. While this number reflects a decline compared to the previous year's 17.6 million visits, it marks an increase from December 2020's 11.9 million visits.

During the month of December, average visits experienced fluctuations, with the holiday season playing a role in this pattern. However, the overall trend reveals a growing practice among businesses: the requirement for employees to come into the office. Notable companies such as United Parcel Service, Boeing, Goldman Sachs, and JPMorgan Chase have recently implemented policies mandating office presence for their employees throughout the workweek.

Newer and High-Quality Buildings Thrive Amidst Changing Times

The latest findings from REBNY reveal fascinating insights into the visitation rates of different types of buildings. In December, buildings classified as A-plus, which indicates that they were constructed within the past 20 years, recorded an impressive average visitation rate that reached 74 percent of the 2019 level. Even in 2022, the rate remained robust at 64 percent. Notably, these exemplary buildings achieved their peak visitation of 88 percent during the second week of December but experienced a slight decline to 48 percent by the end of the month.

In a parallel trend, buildings classified as A or A-minus, constructed roughly 30 to 40 years ago and offering standard amenities, demonstrated a commendable visitation rate that averaged 64 percent of 2019 levels. Even in December 2022, their visitor numbers remained steady at 55 percent.

On the other hand, buildings classified as B or C exhibited an average visitation rate in December at 68 percent of the 2019 level, showcasing a noteworthy increase from the 59 percent average rate in 2022.

Office Buildings in Manhattan's Midtown Outperform Downtown and Midtown South

Amidst the bustling landscape of Manhattan, the office buildings in the midtown submarket have emerged as champions, surpassing both downtown and midtown south submarkets. These resilient structures have managed to maintain a staggering 73 percent of their 2019 level, showcasing their unwavering strength and adaptability in the face of adversity. In contrast, the downtown market lags behind at just 54 percent of its former glory, while midtown south hovers slightly above at 68 percent. It is evident that the midtown submarket reigns supreme, exemplifying its enduring appeal and resilience in the heart of the city.