New REBNY report shows strong Manhattan office occupancy numbers

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2 years ago

July 20, 2023

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In the summer of 2022, the 1.7 million square-foot office tower at 787 Seventh Avenue was less than 20% occupied by employees of such tenants as BNP Paribas, Sidley Austin and Willkie Farr.

Aldo Sohm Wine Bar, a sister restaurant to three-Michelin-star Le Bernardin, struggled to draw a lunch crowd. But now, 787 Seventh is mostly full except on Fridays, according to CBRE power-broker Howard Fiddle, the buildings leasing agent.

They brought their people back midweek, Fiddle said. And Monday is picking up too.

Le Bernardin chef-owner Eric Ripert, whose restaurant is on the ground floor of 787, confirmed the welcome trend,which he termedgreat news for the wine bar in the building arcade.

The 787 Seventh office influx illustrates broad findings of the Real Estate Board of New Yorks new Manhattan Office Building Visitation Report, to be released Monday.

The data present a more optimistic and nuanced picture than what Durst Organization principal David Neil called certain gloomy headlines about the slow-but-steady office-return trend as more companies, especially in finance and law, bring their staff in at least three days a week — and others plan to make it four.

The REBNY study corrects the common misconception that current occupancy rates cited in surveys (including REBNY’s own and the oft-cited Kastle Systems Back to Work Barometer) are based on what many people believe were full offices before COVID hit.

However, REBNY points out, It would be inaccurate to define full recovery of the office market as returning to 100% occupancy — which it calls a goal line that never existed. In fact, pre-pandemic offices were only occupied by employees at 80% of their total capacity for around four days a week.

Attendance plummeted to under 10% of pre-COVID levels during the pandemic and has since rebounded — although not to 2019 levels. But how strong the recovery has been is open to interpretation.

REBNY used proprietary data from Placer.ai to measure a sample of 50 key Manhattan office buildings (Placier.ais algorithm identifies employees mobile-device visits). It found that employee office visits Tuesday through Thursday in the first five months of 2023 averaged 68% of 2019 levels — much higher than Kastles roughly 50% Manhattan estimate.

The numbers dropped on Mondays to 56% of what they were in 2019 and 37% on Fridays, according to REBNY.

A different REBNY metric called same-day comparison, which compares certain specific days such as the first Friday of April 2023 to the first Friday of April 2019, cited an even higher percentage of pre-pandemic attendance — 73%.

REBNYs director of market data Keith DeCoster, who wrote the report, said it makes even clearer that employee visitation rates continue to rebound strongly during mid-week days, while total office building visitation rates are also growing throughout the week, even amid hybrid work policies.

The total visitation data include visits to office building components such as stores, restaurants, galleries and medical facilities. The survey included them because office buildings have a bigger impact on the economy than offices alone, DeCoster said.

Fiddle strongly endorsed the REBNY findings.

I believe the return-to-office numbers are empirically up,” he said. “Nobody says theyre seeing fewer people in the office.

He noted that Midtowns Class-A properties are in a stronger position than in Midtown South or Downtown because financial and law firms want their people back.”

“Walk up or down Park Avenue and everythings full, Fiddle said.

Not so in other parts of Manhattan with tech and creative industries, which can more easily adapt to remote work.

Sports

LSU’s Kelly disputes claim he abandoned player

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2 hours ago

February 5, 2025

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LSU's Kelly disputes claim he abandoned player

Mark SchlabachFeb 5, 2025, 06:48 PM ET
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- Senior college football writer
- Author of seven books on college football
- Graduate of the University of Georgia

Brian Kelly on Wednesday disputed comments made by the father of former LSU safety Greg Brooks Jr., who alleged the Tigers coach abandoned the player after he had surgery to remove a brain tumor in September 2023.

In an interview on “Good Morning America” on Monday, Greg Brooks Sr. said his family hadn’t heard from Kelly or anyone on LSU’s coaching staff since shortly after the surgery.

“There’s many things I can’t say because it is pending litigation, but here’s what I can tell you: It is factually incorrect to state that I was not there by Greg’s side through this ordeal on multiple occasions,” Kelly said during a news conference Wednesday. “I had somebody from my staff that was there virtually every single day.

“We love Greg, we love him for the person that he is, for the competitor that he is and the battler that he is. We only wish him continued progress as he goes through an [incredibly] difficult time.”

In a lawsuit filed in August against LSU and Our Lady of the Lake Regional Medical Center in Baton Rouge, Louisiana, Brooks Jr. accused the Tigers coaching staff of encouraging him to practice after he showed symptoms in practice that something was wrong. He alleged that team athletic trainers misdiagnosed his condition for weeks and waited too long to send him to a neurological specialist.

Brooks, a team captain who transferred to LSU from Arkansas, played in two games in 2023 before doctors discovered the brain tumor.

The complaint alleges that the surgeon who removed the tumor wasn’t qualified to perform the procedure and caused “catastrophic neurological injuries” that left Brooks Jr. permanently disabled. The lawsuit says Brooks Jr. suffered multiple strokes during surgery.

Brooks Jr., 23, can’t walk more than a year after the surgery and is confined to a wheelchair. He had to learn how to write and speak again through rehabilitation.

Doctors told Brooks Jr. that he is cancer-free after undergoing chemotherapy and radiation treatments, according to “Good Morning America.” During the interview, Brooks’ father said he hadn’t heard from LSU coaches during his son’s recovery.

“Specifically, Brian Kelly,” Brooks Sr. said. “My son almost lost his life. Coach, where were you? Forget about football. Pick up the phone and say you love the kid, man.”

Kelly denied the accusation Wednesday.

“You can question me as a football coach, you can question me with things we do on the field but off the field, as a parent, a husband, as someone who is actively involved in every community that I’ve been involved with, this is where I draw the line for me,” Kelly said. “That comment struck a nerve with me. It hit my heart. I’m in this business for our players, and it rattled me that somebody could possibly be so factually incorrect in stating that I was not a part of Greg Brooks Jr.’s care and support. The support was the entire university and entire community. I needed to make sure that record was clear.”

Sports

Sources: Hartline to be Ohio State’s primary OC

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2 hours ago

February 5, 2025

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Sources: Hartline to be Ohio State's primary OC

Adam RittenbergFeb 5, 2025, 05:41 PM ET
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Ohio State is set to promote Brian Hartline as its primary offensive coordinator, replacing Chip Kelly, and will have him handle playcalling, sources confirmed to ESPN on Wednesday.

Hartline, a former Ohio State standout wide receiver who has coached the team’s wideouts since 2018, served as co-offensive coordinator under Kelly last season as the Buckeyes won their first national title in a decade. He held the primary offensive coordinator title in 2023, although head coach Ryan Day handled much of the playcalling. Day gave up playcalling to Kelly after the 2023 season, choosing to focus on the team’s overall operation, and is expected to keep the approach with Hartline, according to a source.

Kelly left earlier this week to become Las Vegas Raiders offensive coordinator under new coach Pete Carroll. 247 Sports first reported Hartline’s expected promotion.

Hartline played for Ohio State from 2006 to 2008, before entering the NFL draft, where he was selected in the fourth round. He played six seasons for the Miami Dolphins and one for the Cleveland Browns.

Since returning to his alma mater, Hartline has overseen one of the nation’s top wide receiver rooms, which has produced five NFL first-round draft picks in the past three drafts, including Marvin Harrison Jr., the No. 4 pick in 2024. Ohio State returns record-setting wide receiver Jeremiah Smith and others for the 2025 season but will be looking for a new starting quarterback.

Offensive analyst Billy Fessler is expected to be promoted to quarterbacks coach, sources confirmed to ESPN’s Pete Thamel.

Hartline’s offensive staff also will include new line coach Tyler Bowen, who had previously been Virginia Tech’s offensive coordinator, sources told Thamel earlier Wednesday. Bowen replaces Justin Frye, who left to coach offensive line for the Arizona Cardinals.

Environment

Trump to help spark a nuclear energy ‘renaissance,’ investor says

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3 hours ago

February 5, 2025

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Trump to help spark a nuclear energy ‘renaissance,’ investor says

There's a 'nuclear renaissance,' says CIO

Nuclear energy is set for a “renaissance” that will be accelerated by backing from U.S. President Donald Trump’s administration.

That’s according to Yuri Khodjamirian, chief information officer at Tema ETFs, who noted that the Trump administration is “very, very interested in backing this technology.’ However, he also warned investors that developing this energy source is “going to take time.”

New nuclear technology approvals take “10 years to get done,” Khodjamirian said, but added that the nuclear re-emergence will likely be accelerated under the new Trump administration.

Speaking to CNBC’s Silvia Amaro on Tuesday’s “Squawk Box Europe,” Khodjamirian said his investment fund has its eyes on firms with a history of developing nuclear technology, such as U.S.-based BWX Technologies, which builds nuclear reactors for military carriers and submarines.

Khodjamirian said Tema is being “very selective in a new technology called small scale modular reactors.”

Small scale modular reactors (SMRs) are advanced nuclear reactors with the ability to provide around one-third of the generating capacity of traditional nuclear power reactors, according to the International Atomic Energy Agency.

SMRs take up less physical space compared to conventional reactors and produce a large amount of low-carbon electricity.

“There’s a lot of excitement there, and equally, a lot of loss-making companies that have unproven technologies, and we’re going for companies that have projects that are approved,” Khodjamirian said.

The nuclear energy renaissance is partly driven by a wave of people that are “realizing that it’s a stable, clean source of energy,” the chief investment officer said, adding that he believes that “there is a need for extra investment” in nuclear, alongside green energy sources that are variable in their electricity production.

“Renewables are good. They can be put up to speed quickly, but they require battery storage,” he said.

Why Amazon, Microsoft, Google and Meta are investing in nuclear power

Trump has moved quickly on his energy agenda since his return to the White House. The U.S. Senate on Monday confirmed Chris Wright, a fracking executive and a Trump ally, as energy secretary.

Wright is a known nuclear energy supporter, having previously served on the board of advanced reactor company Oklo, as well as having held the position of chief executive at Liberty Energy. The energy firm has since appointed a new CEO following Wright’s confirmation as U.S. secretary of energy.

In 2023, Wright signed a letter supporting nuclear energy.

Digital borders

Khodjamirian is also closely monitoring artificial intelligence volatility, after the emergence of China’s Open AI model DeepSeek sparked concerns over how much money big tech companies will invest in AI.

European nations have voiced security concerns over DeepSeek.

Italy was the first country to block DeepSeek on data protection concerns. France‘s privacy watchdog has expressed concerns and South Korea’s industry ministry has temporarily restricted employee access to the Chinese startup’s AI model.

Taiwan, meanwhile, banned state departments from using the Beijing-based chatbot, wary of potential security threats from Beijing.

The international pushback shows that “no one really knows exactly how to defend digital borders,” according to Khodjamirian.

Global concern will “limit the growth of this model, because it’s coming out of China, but it’s clearly showing you that the West needs to be aware that there’s a lot of technical development,” he said.

“[But] I do think it redraws some of the lines, and it’ll be interesting to see how the U.S. in particular reacts,” he added.