More on NYC's office market


** New York by the Numbers
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** Monthly Economic and Fiscal Outlook
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Photo Credit: Marianna Ianovska


** No. 89 - May 14, 2024
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** A Message from the Comptroller
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Dear New Yorkers,

If you’ve ever wondered how government actors make decisions on economic development subsidy applications, this month’s Spotlight ([link removed]) is for you!

We take a fresh look at how the market for office space has evolved since our last analysis a year ago ([link removed]) . We find that the “doomsday” scenario we considered then does not, happily, appear to be materializing.

However, we still anticipate a long period of protracted pain and transition, especially in Class B and C office portfolios, where conversions to residential or new commercial uses are proceeding steadily but slowly. After explaining the City’s “Manhattan Commercial Revitalization Program” (M-CORE), we give you a peek into how our office made our decision on two M-CORE projects.

Springtime is budget season in New York. The recently-adopted State budget boosted the City’s debt capacity by $14 billion over two years, allowing us room to borrow to fund capital needs for schools, transportation, and housing. We took a deep dive into the debt limit ([link removed]) , concluding that the increase is responsible … but identifying steps the City should take to keep it that way.

The State budget also increased funding to the City for services to asylum-seekers. One model I hope will get more attention is now underway in Buffalo. After the Adams Administration finally cancelled the $432 million contract with DocGo (which I rejected last fall), responsibility for over 500 families has been transferred to the Jewish Family Services (JFS) of Western NY, who will provide supportive services, housing and case management, with the goal of helping families transition to self-sufficiency in 9 to 12 months (far more realistic than the 30 to 60 days that the City is enforcing here, as our recent investigation ([link removed]) finds). The JFS model works: let’s do more of it in New York City and around the state.

Now, the budget focus turns to New York City. We’ll release our analysis of the Mayor’s $111.6 billion Executive Budget later this month, as the City Council debates it, and moves toward negotiations with the Mayor and adoption next month.

Let me know how you’d have voted on the M-CORE projects, if you were watching the numbers!

Brad Lander


** Table of Contents
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** The U.S. Economy ([link removed])
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** New York City Economy ([link removed])
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** City Finances ([link removed])
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View the Full May Economic Newsletter ([link removed])


** Spotlight:
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** NYC's Office Market
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A year ago we looked at ([link removed]) the state of New York City’s commercial real estate and presented a range of potential scenarios for the years ahead and what they would mean for tax revenues and the City’s fiscal situation. In this month’s Spotlight, we take a fresh look at how the market for office space has evolved, and how its various segments have fared.
View the Spotlight ([link removed])


** In Case You Missed It
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Over the past month, the Office of Comptroller released the following announcements on the state of NYC’s economy and finances:

* Fiscal Note: Strategic Asset Allocation ([link removed])
* NYC Comptroller’s Investigation Finds Adams Administration Implemented the 60-Day Shelter Limit in Haphazard, Ineffective Manner ([link removed])
* City Paid $1.45B in Settlements Last Fiscal Year, NYC Comptroller Finds in FY 2023 Claims Report ([link removed])
* Comptroller Lander Unveils New Dashboard to Track Shelter Population, Eviction, Housing Vouchers, & More ([link removed])
* Statement from NYC Comptroller Lander on FY 2025 State Executive Budget ([link removed])
* Comptroller Lander Investigation Finds City Must Bolster Key Emergency Response Infrastructure & Communications Before Next Major Storm ([link removed])
* Statement from NYC Comptroller Lander on Mayor Adams’ FY25 Executive Budget ([link removed])
* Comptroller Lander & NYC Pension Trustees: Shareholders Should Reject Election of Out of Step Saudi Aramco CEO to BlackRock Board ([link removed])
* NYC Comptroller & New York Appleseed Map Out Blueprint for Inclusive, Integrated School Mergers to Help Meet Lower Class Size Mandate ([link removed])
* NYC Comptroller Report Finds $12 Billion Increase in City’s Debt Capacity, Proposed in State Budget, is Both Reasonable & Sufficient to Meet City’s Capital Needs ([link removed])

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