A loose coalition of New York's top property owners including Related Cos., RXR Realty, Rudin Management and SL Green Realty have been working the phones to cajole and entice its large tenants to return to the office, according to a report by Bloomberg.
Although New York City opened its offices to non essential workers weeks ago, buildings have remained largely empty as companies continue to allow workers to remain at home. Landlords are experiencing growing angst about this state of affairs for many reasons. One is that nearby amenities are suffering and will go out of business without the foot traffic from office workers. Another is a fear that the longer employees stay away the easier it will be for companies to get used to remote working.
In some ways, this particular ship has already sailed. A handful of large tech companies including Google and Salesforce have announced that workers don't have to return until next year. "The impact of these firms allowing work from home will likely cause a significant slowdown is space absorption across the country," real estate pro G. Ryan Smith said in a GlobeSt.com hosted Twitter chat last week.
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