New York isn't the only city experiencing high vacancy rates for office space. This chart from SocketSite shows a similar trend in San Francisco. I wonder what this means for the fate of cities after the world gets a handle on Covid-19? Will companies continue to encourage people to work from home? If so, what happens to those spaces? What about the restaurants, parking lots, and transportation systems that rely on office workers to stay in business?
At the same time, leasing activity over the past two quarters hit at a 30-year low, with only 385,000 square feet of leasing activity in the third quarter, versus a post DotCom-era nadir of 933,000 square feet in the second quarter of 2001, and with roughly 3.1 million square feet of office space now under construction as well (half of which is currently pre-leased, including Uber's new buildings on Third, and 1.6 million square feet which is not, including the million square foot Oceanwide tower rising at 50 First).