It was just the other day that the Federal Reserve Bank of New York told CRE people in the office sector not to get overly worried. Although remote work was clearly here to stay to some degree, the amount of workspace in greater New York City was stable.
Just one problem: not all large tenants are buying it. As the Wall Street Journal reported, there are big companies taking additional looks at office usage because they're concerned about an economic downturn and whether they need to spend at their current rate for space they might not need.
"Companies including consulting firm Korn Ferry, business-listings provider Yelp Inc. and government contractor Leidos Holdings Inc. are scrutinizing their space needs again as they contend with high inflation, rising interest rates and an uncertain economic outlook," the Journal wrote. "Many businesses also have a better sense now of how many people will come back to the office on a regular basis."
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