Manhattan office rents may fall to their lowest level since 2012 if the economy struggles to recover from the coronavirus pandemic, according to a report by real estate services firm Savills.
In a prolonged recession, asking rents could drop 26% to about $62.47 per square foot.
While some offices in New York City have reopened, many buildings remain empty as workers are nervous about public transportation and crowded workplaces.
“Many assume that when the stay-at-home measures are lifted, there will still be Covid-19 fears that will continue to materially influence behaviors and the economy,” Savills said.
Those fears are likely to remain a factor until there's a vaccine for COVID-19, which experts estimate is at least a year away, according to the report.
