New York City office demand is finally back to normal

Core Insights - Demand for New York City office space has returned to pre-pandemic levels, driven by an influx of new workers and employer initiatives to bring employees back to the office [1][2] Group 1: Office Demand and Market Dynamics - Office demand in New York City increased by 25% year-over-year in the fourth quarter, as measured by unique new tenant tours, indicating a strong recovery in leasing activity [2] - The city's Office of Management and Budget forecasts approximately 38,000 new office-using jobs by 2025, primarily in finance, business services, and information technology [3] - SL Green Realty ended the year with an occupancy rate of 92.5% and anticipates over 93% leased occupancy in the coming year, reflecting tightening in the office market [4] Group 2: Corporate Developments - IBM signed a 92,663-square-foot expansion lease with SL Green at One Madison Avenue, increasing its total footprint at the property to over 362,000 square feet, demonstrating commitment to the New York tech sector [5][6] Group 3: Comparative Market Analysis - While New York City leads in office recovery, other markets like San Francisco saw a 32% annual growth rate in demand, with Seattle and Chicago experiencing around 15% growth each [7] - Nationally, office demand rose by 12% in the fourth quarter compared to the previous quarter, defying typical seasonal trends [8][9]