Tuesday, October 19

New York is one of the cities with the lowest rate of return to offices after lockdown; economy at risk

Vicious Circle: Abandonment of Midtown fuels homelessness and crime.

Photo: Andrés Correa Guatarasma / Courtesy

New York, the financial and corporate capital of the world, is lagging behind other US cities in getting employees to stop working from home and return to their offices, according to a new report.

Only 20.7% of employees in NYC were back in the office on June 9, according to building management firm Kastle Systems, which has since April monitored 2,600 towers that house 41,000 companies to which it provides services in 46 states of the country, cited New York Post.

In the 10 largest cities in the US, Kastle estimated that an average 31.5% of workers had returned to the office. But New York is not alone in the rear: Employees in San Francisco and San Jose – both cities in California – are returning to companies at even lower rates, at just 18.2% and 20.2% respectively. Texas cities, on the other hand, are far outpacing the rest of the nation in the comeback effort.: Dallas, Austin and Houston reported up to 49.7%, 48.7% and 47.7% occupancy.

A recent inquiry estimated at 60% the return to the offices in September in NYC, parallel to the beginning of the new school year. But at the same time, those consulted indicated that now insecurity, especially in public transport, generated more fear than the coronavirus when considering returning to the pre-pandemic routine.

“Employers specifically noted worker safety concerns in and around public transportation hubs as Grand Central y Penn Station”, The two largest terminals in the city, highlighted the non-profit organization Partnership for New York City (PFNYC).

Other surveys recently conducted by the MTA have pointed to the same results: the city has added police presence in the Metro, but an April poll found that less than half of the passengers (45%) had noticed the additional officers.

There is also There is some optimism in New York because in the last week office occupancy increased 2.5%, according to Kastle’s calculation. However, some employers seem to be losing patience and have threatened to cut wages, leaving high New York pay only to those who are actually in town.

For example, earlier this week, Morgan Stanley CEO James Gorman issued a stern warning to his staff: Come back to the office before Labor Day (Sept. 6) or you’ll face a pay cut. “We do our work inside the offices… and that’s where we teach, that’s where our interns learn, that’s how we develop people,” he said. “If you can go to a restaurant in New York City, you can go into the office.”

For those who fled New York City in search of cheaper and more spacious housing, or perhaps insecurity or high taxes, Gorman launched a direct message: If they want a salary from New York City, they will have to be in all five boroughs to earn it.

But in other cases, it is the same companies that have decided to close their spaces and / or move from New York, to save costs in the long run, even offering bonuses to your employees.

A massive change in labor presence implies major social, fiscal and economic impacts: the refusal to return to the offices It could influence the real estate market, businesses and the urban landscape in Manhattan, an island full of skyscrapers, most work spaces with businesses that depend on them.

Many people have moved taking advantage of the fact that they no longer have to work daily in NYC, among other reasons; and with empty offices and diminished business trips, Restaurants, retail businesses and hotels have also been affected around the city. Ironically, neglect fuels homelessness and crime, creating a vicious cycle.


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