How the COVID-19 Pandemic Affected New York City Real Estate
The COVID-19 pandemic brought about countless unprecedented events and is being described as the event of our lifetimes. One of the most significant outcomes of the COVID-19 pandemic is the exacerbation of inequalities in social and economic classes that were already occurring at a slower pace than before the pandemic began. One major area of concern affected by the pandemic is New York City real estate, with Manhattan's office vacancy rate shooting up to 15% in 2020 due in part to office workers working remotely to avoid indoor congregation. It is estimated that residential landlords in New York City experienced losses above $1 billion during this time.
How Big Tech Companies Have Expanded Their Real Estate Footprint in New York City
With office space and residential vacancies rapidly increasing due to people leaving the city, big tech companies such as Amazon, Facebook, Netflix, and Google took this opportunity to rent up vacant office spaces in Manhattan as well as build new distribution hubs in Brooklyn, Queens, Staten Island, and the Bronx. This had already been occurring at a slower pace over recent years due to state financial incentives and private university expansions, among other reasons. Their presence has helped buoy the city's real estate market during this difficult time.
How Does This Affect Me?
As empty office spaces fill with new companies, it is important to remember that the economic and social core of the five boroughs still resides with its long-time residents and employees. It's critical for the prior residents and office workers of all areas of New York City to be able to continue to live and work in their desired spaces uninterrupted. If you are facing eviction, foreclosure, or have other questions related to residential or commercial real estate in New York, then call us so we can help!
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To schedule a consultation with an experienced attorney at The Law Offices of Melvin Monachan, call us at (347) 389-1682 or contact us online.