Navigating change: how RTO is shaping NYC’s workforce

In recent years New York City’s commercial development landscape has witnessed several notable trends including a slowdown in new development, a decline in coworking activity, and a focus on mixed-use development, adaptive reuse, sustainability, affordable housing, transit-oriented projects and tech-enabled spaces. But emerging research from the Big Apple suggests that the tides are changing for the real estate market.

According to Savill’s Manhattan Q3 2024 Office Report, Manhattan’s office leasing is currently experiencing a resurgence – stats from Q3 of 2024 point to the highest leasing activity since 2019. Perhaps we can expect to see an increase, then, in employees present in the office, with research from 2023 showing that just half (52 per cent) of Manhattan workers are present in their workplace on an average weekday. This figure is already up three per cent from 2022, and the influx of return-to-office mandates in the city suggest that it will increase further.

The volume of leases totalled 25 million square feet in the first three quarters of this year, with the largest lease belonging to Blackstone’s 1,058,571-square foot renewal and expansion at 345 Park Avenue. These were largely driven by companies in the financial services sector.

Despite this resurgence in office space utilisation, research from Colliers suggests that office employment in the city has experienced a slight decline, with New York City’s private sector job growth slower than both the national and state averages.

Navigating the tensions

Added to the mix is a growing trend towards return-to-office mandates, with employees facing stricter requirements to return to their places of work full time. Most recently, Amazon CEO Andy Jassy has called for workers to return to the office full-time in the new year, sparking pushback from employees who have settled into a hybrid routine. Return-to-office mandates are at the forefront of discussion in the city, as employees are increasingly affected by demands for in-office presence. Concerns around extra commuting time, costs, and a decrease in work-life balance are fuelling the debate, increasing tensions between employers and employees.

Reshaping ideas at WORKTECH New York

The landscape of work in New York is entering an era of dynamic change, and the city will need to address these shifts head-on. Workplace leaders will address some of their challenges and success stories in the upcoming WORKTECH New York conference on Tuesday 8-9 October. The two-day conference will showcase some of the cities most innovative workplace thinkers, as well as tackling debates around achieving hybrid success and New York real-estate development.

The first day of the conference will feature over 30 industry leading speakers, including professionals from Google, Mastercard and Amazon. On the second day, the WORKTECH New York Lounge will make its debut, and the audience will hear from a panel of workplace book authors as they dive into an array of workplace insights. This will include an appearance from Tracy Brower, the author of The Secrets to Happiness at Work, as well as Philip Ross, co-author of Unworking: The Reinvention of the Modern Office.

The two-day WORKTECH New York event offers a chance to engage with thought-provoking discussions at a pivotal moment for the future of work. Find out more about the conference agenda here.