Why Banks' WFH Policies Could Shape New York's Office Market

In this series, Make Yourself At Home, we are hearing from members of the commercial real estate industry about how they are managing this new reality and gaining insight into their day-to-day approaches. You can subscribe on iTunes and Spotify.

Courtesy of Michael Colacino
Michael Colacino

In this episode, we talk about the future of the office market in New York City, now that the summer is unofficially over. Though commercial office buildings were given the green light to open back up in June, many workers have continued to work remotely.

In recent weeks, office landlords have been encouraging employers to bring their staff back, saying the future of the city's economy depends on it. In the last week, both JPMorgan and Goldman Sachs have indicated they are sending workers back to their desks.

Their decision will have a big impact on the health of the leasing market, SquareFoot President Michael Colacino, a broker who represents tenants exclusively, said on the podcast.

"A 1% change in JP Morgan's occupancy means a lot more than 50 startups. The startups produce a lot of innovation ... [But JPMorgan] occupies tens of millions of square feet around the country," he said. "The focus on Facebook and Google, it's all kind of artificial, because they are not the ones that drive office demand in cities like New York." 

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