Offices in New York were largely occupied by the end of the week

“You can’t stay in pajamas all day! » In the winter of 2022, the new (Democratic) mayor of New York City, Eric Adams, invited residents to return to office. “New Yorkers, it’s time to get back to work. You can’t tell me on Monday that you’re afraid of covid-19, and I’ll see you at the nightclub on Sunday. » At the time, many thought that pressure from employers and rising unemployment due to inflation would return to normal. He let go. “Return to office delayed”under the name The Wall Street Journal, May 16.

The share of US companies requiring their employees to work full-time in the office fell from 49% to 42% in three months. The percentage of employees who work remotely for at least six hours a week has certainly fallen from 61.5% at the height of the pandemic to 28.4% in April, according to the Work from Home think tank, but that figure is nothing. With the current situation before 2020, when working from home only concerned 4.6%.

Unnoticed, they take a four-day week on the road to a deserted building on Friday. Thus, in New York in January, the office occupancy rate was over 60% on Tuesday but barely exceeded 25% on Friday.

tax assistance

This situation represents a disaster for urban service activities. According to Working from Home, for any employee who works from home instead of commuting to Manhattan, $4,600 (about €4,250) in turnover is not realized. “An accountant who is not in his office does not go to the dry cleaners and restaurants. It does not allow cooks, waiters, dishwashers [de gagner leur vie] »Blamed by Mr. Adams.

The mayor introduced tax relief for the renovation of offices built before 2000. “Any empty office means less funding for everything from schools to low-income housing. » By definition, telecommuting is for “computer workers” in tech, banking, and consulting, and very few low-wage workers in hospitality, entertainment, and retail. It’s also a tragedy for City Hall: a third of its budget is financed by property taxes ($31 billion a year), 40% of which comes from commercial or office real estate.

Office occupancy rates in the 10 largest US cities have been as high as 50% for weeks, according to security firm Kastle Systems, which monitors access card reading. Companies have alternated between the stick and the carrot to attract their employees. According to The Wall Street JournalLaw firm Davis Polk & Wardwell LLP threatened to cut bonuses for employees who were absent three days a week. In April, investment bank JP Morgan required a five-day week. As for Meta, Mark Zuckerberg’s firm, he has indicated that he no longer wants to hire people completely remotely, which is why he is calling for a return to the office.