New York Isn't Dead

Squawk Pod


It was the headline struck at the heart of cities. During the pandemic new york is dead. Forever author investor james outdoors op-ed declared new york in a death spiral because quote businesses are remote and they aren't return to the office ended up leading jerry seinfeld to pen. His celebrated appeal declaring that new york. Sure as hell will be back so a year later. Who was right robert. Frank joins us with more robert. Good morning andrew jerry. Seinfeld's words still inspiring new yorkers year later with that hashtag. nyc is not dead and that of course was a response to all tutors. Op ed saying that. Remote work empty office. Buildings boarded up restaurants and hotels. Rising crime and high taxes would hollow out the city for years or decades. Now who was right. Well a year later on the residential real estate size that side that has rebounded sales more than doubling over the past year prices almost back to pre pandemic levels and do rentals having their best quarter in recent history. You look at restaurant traffic. That was down. Eighty nine percent a year ago from pre penned democ. Now it's about half of those prepaid pandemic levels. Mta subway ridership. It is improving but it is still about half what it was pre pandemic hotel occupancy now at around sixty seven percent that compares to about forty percent a year ago so improvement there as well. But new york's recovery future depends a lot on office workers and that is the big unknown. There was forty seven million square feet of empty office space in midtown as the first quarter and then if you look at rental rates they are down nine percent from a year ago a year ago only twelve percent of new york city workers were back in the office. Now it is twenty three percent and guys with the delta variant. We thought people would come back in right after labor day. Now we're looking at mid october. Maybe so until we get those office workers back until we know how many do come back. New york's recovery is still open to question

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