New York commercial real estate took a hit during the peak of the COVID-19 pandemic, and it wasn't alone. Restaurants shuttered their doors, and Broadway turned off the lights. Remote workers didn't just leave office buildings; they left the city entirely. Reuters reports that the loss of income resulting from New Yorkers moving out of the city topped $34 billion.
Fortunately, the tides are turning. As people return to the city, and Broadway opens its doors once again, commercial real estate experts see signs of hope on the horizon.
Impacts of COVID-19 are in Decline
Although COVID-19 had devastating consequences for New Yorkers initially, that hard lesson has affected efforts to overcome the pandemic, especially in Manhattan. Nearly 85% of Manhattan residents are at least partially vaccinated. Overall, the medical community is better at treating and managing COVID, and as fears surrounding the virus ease, so will the concerns about getting people back into their office spaces.
The Talent Pool is Returning
Those who initially left the city in search of fresh air are now returning. As John Steinbeck once said, “But there is one thing about it—once you have lived in New York and it has become your home, no place else is good enough.”
In addition to its amazing culture, New York offers the type of infrastructure other big cities can only dream of. From public transportation to the best tech, the city will always be a commercial hub that attracts talent. That talent pool appears to be making its return, and commercial real estate occupancy rates are steadily increasing.
Commercial Real Estate Owners Adapt
While the New York commercial real estate sector continues to recover from the pandemic, building owners will adjust in New York style. Many tenants will favor new spaces with open spacing and modern ventilation. Ultimately, newer commercial real estate spaces are likely to see high demand. Commercial real estate spaces that can't offer those newer amenities could be transitioned into the residential or hospitably markets.
Speak to a Professional
If you're struggling to pivot in the present commercial real estate market and worry you could face default or foreclosure, it's time to speak with an experienced New York commercial real estate attorney. To learn more, call The Law Offices of Melvin Monachan at (347) 389-1682 or contact us online.