New York Offices to See $453 Billion in Value Wiped Out Due to Remote Work
New York Offices to See $453 Billion in Value Wiped Out Due to Remote Work

By Katabella Roberts

Offices in New York face losing $453 billion in value due, in part, to the rise of remote work, a new study from the National Bureau of Economic Research (NBER) has found.

According to the study, which was conducted by researchers at New York University and Columbia University, the value of offices in New York City declined by around 45 percent in 2020 after the COVID-19 pandemic led to “drastic changes in where people work.”

In the long term, the values of the properties are set to decline 39 percent below pre-pandemic levels due to the rise of remote work, according to the study, representing a $453 billion value destruction.

“The total decline in commercial office valuation might be, as a consequence, around $518.71 billion in the short run and $453.64 billion in the long run,” the study noted.

The study, which has not yet been peer-reviewed, utilized lease-level data from CompStak, a real estate data platform, and financial reports from real-estate investment trusts.

It focused on New York City, but included data from 105 office markets throughout the United States over the period from 2000 until May 2022.

“Higher-quality office buildings were somewhat buffered against these trends due to a flight to quality, while lower-quality office buildings see much more dramatic swings,” the study notes. “These valuation changes have repercussions for local public finances and financial sector stability.”

‘Implications for Local Public Finances’

Higher-quality office buildings typically refer to buildings that have been recently built or renovated and come complete with high-quality on-site amenities. They are commonly described as “Class A+.”

At the end of February 2020, 95 percent of office space was occupied in the United States; but by the end of March 2020, occupancy dropped to 10 percent, the authors said, adding that occupancy levels have remained “depressed ever since.”

As of mid-September, the average office occupancy rate was 47 percent, according to the study, which also noted that the impact of remote work on the value of offices could have important implications for local public finances.

“For example, the share of real estate taxes in New York City’s budget was 53 percent in 2020, 24 percent of which comes from office and retail property taxes. Given budget balance requirements, the fiscal hole left by declining CBD [central business district] office and retail tax revenues would need to be plugged by raising tax rates or cutting government spending,” they wrote.

The latest study findings come as a string of firms throughout the United States have opted to keep in place work-from-home protocols that were initiated during the COVID-19 pandemic and subsequent lockdowns, due in part to the financial benefits related to allowing employees to work remotely.

However, many companies, including Elon Musk’s Tesla, have told workers that they need to return to the office or risk losing their job. 

In August, a group of Apple employees launched a petition requesting more flexibility around working arrangements after the company told workers they would need to return to the office for three days a week starting the week of Sept. 5.

Affiliate News Feeds

  • Reuters
  • Washington Examiner
  • The Federalist
  • The Epoch Times
  • The Guardian
  • The Gateway Pundit
  • Judicial Watch

By Hans Mahncke News Analysis Late on Dec. 2, Elon Musk started the process of releasing thousands of internal Twitter emails. Musk, whose purchase of Twitter was completed on Oct. 28, had previously announced… [...]

By Naveen Athrappully France is banning short-haul domestic flights when there is a regular and frequent train option that takes less than two and a half hours, after a 2021 climate law, No… [...]

By Katabella Roberts House Minority Leader Kevin McCarthy (R-Calif.) vowed on Sunday that the fiscal 2023 National Defense Authorization Act (NDAA) will not move forward unless the military’s COVID-19 vaccine mandate ends. Speaking on Fox Business Network’s “Sunday… [...]

California lawmakers are once again poised to introduce legislation to tax Big Oil despite public backlash over a similar move earlier this year. [...]

The Supreme Court heard oral arguments Monday in a case about whether a custom webpage designer who disagrees with LGBT marriage can refuse to create a website for a same-sex… [...]

President Joe Biden is considering the idea of removing the COVID-19 vaccination mandate for U.S. service members, though he backs Defense Secretary Lloyd Austin’s continued support for the measure. [...]

Even corrupt corporate media are willing to acknowledge the risk of nuclear war is 'now a daily issue for the Biden administration.' [...]

A legal rep for the Loudoun County School Board engaged in witness tampering during an investigation into an alleged sexual assault. [...]

The attack on Lorie Smith is both authoritarian and unconstitutional. [...]

A recently discovered filing in a court case relating to Big Tech censorship revealed that the office of Arizona Secretary of State Katie Hobbs coordinated with Twitter to censor election… [...]

The Biden administration has claims it drained the heavily depleted U.S. Strategic Petroleum Reserve (SPR) in order to save the “global economy.” The White House’s International Energy Affairs adviser, Amos… [...]

To some, it’s an arcane discussion among constitutional scholars that reads like cement. To others, it’s a brazen grab for “runaway legislative power” by state lawmakers who say the U.S.… [...]

Labour-endorsed study finds initiative would save families thousands of pounds, cut benefits spending and raise tax revenuesFree universal preschool childcare and more funding for after-school clubs could increase government revenues… [...]

Charity boss talks of very difficult time for her charity Sistah Space since encounter with Susan HusseyA black British charity leader who was asked where she “really came from” by… [...]

PM caves in as up to 100 Tory MPs threaten to rebel, leading Labour to accuse him of putting party before countryRishi Sunak is to drop compulsory housebuilding targets to… [...]

Orange County, California – A Huntington Beach school principal committed suicide at Disneyland on Saturday. Christopher Christensen, 51, jumped off the Mickey & Friends parking structure on Saturday. Christensen said… [...]

Joe Biden’s Assistant Secretary of Health’s leading mission from day one has been pushing the normalization of transgenderism in our nation’s children.  This time, however, Levine wants America’s physicians to… [...]

Senator-elect Eric Schmitt, and current Missouri Attorney General, joined Sean Hannity on Monday night to discuss the federal government’s collusion with Democrat politicians to silence their conservative opposition. Currently, Missouri… [...]

Top Headlines of the Week Press Releases Judicial Watch: Secret Service Has Repeatedly Changed Story on Existence of Hunter Biden Gun Records Judicial Watch announced recently that the United States… [...]

From The European Conservative: In recent days, we have seen news reports proclaiming the Ukrainian victory along the western bank of the Dnipro River in the city of Kherson. These… [...]

Secret Service Repeatedly Changes Its Story on Hunter Biden Gun Records What is the Secret Service Hiding about Biden Raid on Trump’s Home? Judicial Watch Sues to Find Out! Judicial… [...]

USNN2020

USNN World News (USNN) USNN World News Corporation is a media company consisting of a series of sites specializing in the collection, publication and distribution of public opinion information, local,...