Unveiling the True Price of NYC Office Space
The pandemic has left Manhattan's office buildings facing a crisis as corporate tenants downsize or opt not to renew leases, resulting in a record-high office vacancy rate of around 22%. Scott Rechler, a major office landlord in the city, is reassessing the value of his buildings and categorizing them as either "digital" (worth saving) or "film" (not worth keeping). Rechler warns of a potential slow-moving train wreck in the commercial real estate market, which could lead to the collapse of banks and have a detrimental impact on the city's economy. He is advocating for action from regulators and policymakers to prevent a crisis and believes that new opportunities will arise for his business and the city in the aftermath.