Manhattan's Return-to-Office Soars in December to 67% of Pre-Pandemic Levels

The return-to-office momentum in New York City continues to gain traction, signaling a promising shift in commercial real estate. According to the Real Estate Board of New York, average visitation rates at 350 Manhattan buildings rose to 67% of their 2019 levels in December. This marked an improvement from the 65% recorded in November, showcasing a consistent upward trend.

Excluding the quiet week between Christmas and New Year's, the visitation rates would have reached an impressive 74%. This surge in activity during the holiday season demonstrates the growing willingness of professionals to return to their office spaces, recognizing the benefits and conveniences they offer.

A Promising Shift in Office Occupancy

REBNY’s latest report, backed by comprehensive data from Placer.ai, reveals a positive trend in office occupancy rates. By tracking the mobile data of office tenants and employees, Placer.ai's location data analysis has consistently shown an increase in the percentages of office occupancy compared to the pre-pandemic year of 2019.

A Boost in Office Visitation in Manhattan's Different Districts

In December, premium office buildings in New York City, known as Class A+ properties, experienced an impressive average visitation rate of 74%. Meanwhile, Class A and A-minus properties as well as B/C buildings recorded visitation rates of 64% and 68%, respectively. The bustling Midtown district saw its visitation rates rise to 73%, while Midtown South maintained a steady 68% rate. However, Downtown experienced a slight decline with its visitation rate dropping to 54%. Despite the challenges faced due to the pandemic, office visitation in Manhattan has been gradually recovering, although it still remains below the levels seen in 2019. Keith DeCoster, the director of market data and policy at the Real Estate Board of New York (REBNY), expressed optimism about the steady upward trend in office activity in Manhattan, especially given that other cities have witnessed a slowdown in visitation.