NYC: HQ of the World
New York is evolving. The city’s skyline tells a story of resilience, reinvention, and relentless ambition. But behind the glass facades and towering heights, a quieter revolution is underway—the transformation of commercial real estate. And at the heart of it? Smart technology.
In this period of transformation, New York is facing many challenges and questions: from evolving workplace expectations to sustainability mandates, return to office, retrofitting and digital transformation.
So, how is the commercial real estate and workplace sector facing these challenges? What do New Yorkers really think?
Smart Spaces recently visited the Big Apple to interview 14 experts, landlords and workplace professionals to hear their thoughts. We combined these interviews with data and research from JLL and WORKTECH Academy to produce a report that tells the true tale of the state of the market for New York.
In our exclusive documentary and detailed written report, we take a deep dive into the trends reshaping workspaces, sustainability, and tenant experience. In an era of complexity, we bring clarity, helping landlords, developers, and occupiers stay ahead.
The New Workplace Reality
“New York’s strength has always been its ability to attract talent,” says Kristen Edgreen Kaufman of the Carnegie Council for International Affairs. This remains true—but the way talent works has shifted. Today, 58% of Manhattan office workers are back in the workplace on an average weekday, predominantly following hybrid schedules. The three-day office week has become the new norm, while only 12% have returned to a traditional five-day schedule.
This evolution isn’t just about occupancy—it’s about experience. Employees now expect workplaces that compete with the convenience of home. According to Alec Fomin, Director of Member Experience at Sage, “what we’re seeing is a flight to quality—not just in the physical space, but in what that space offers to employees.” Trophy Class buildings—those delivering premium amenities—have seen an 11% increase in occupancy, while less-equipped Class B and C properties have experienced an 8% decline.
Technology is the Differentiator
New York’s office market is being shaped by smart technology, transforming workplaces into dynamic, user-centric environments. JLL’s Technology Survey shows that 50% of occupiers have implemented in-office collaboration tools, while 48% have adopted health and wellbeing solutions. This tech-driven approach isn’t just about convenience—it’s about creating workplaces that inspire productivity and connection.
“The future of the workplace will be built upon technology enablement,” says Peter Miscovich of JLL. From occupancy sensors to predictive maintenance systems, smart tech is reshaping how buildings operate and how people engage with their environments. As Will Brouwer of WiredScore puts it, “buildings that deploy technology, in addition to rich amenities, have much better utilization of those amenities.”
Sustainability: From Nice-to-Have to Must-Have
In New York, sustainability isn’t just a talking point—it’s law. Local Law 97 mandates strict carbon reduction targets for commercial buildings, with financial penalties for non-compliance. As Dan Drogman, CEO of Smart Spaces, notes, “Local Law 97 is really forcing building owners and occupiers to understand their carbon footprint and find ways to save energy.”
This regulatory push is driving significant investment in green tech. JLL’s survey reveals that 45% of organizations plan to adopt energy/emissions management systems in the next three years, while 44% are prioritizing smart energy infrastructure. Sustainability has become table stakes for landlords and tenants alike—not just for compliance, but to attract top-tier tenants and talent.
Retrofitting the Future
New York’s iconic architecture is both its pride and its challenge. With more than 40 million square feet of new commercial space delivered over the past five years—and far less in the pipeline for the next five—attention is turning to existing building stock. Yet retrofitting aging properties is no small task.
“The greatest challenge is the obsolescence of existing buildings that are not fit for purpose,” says Peter Miscovich. Retrofitting often proves more expensive than building new, prompting property owners to adopt incremental approaches. Melissa Jordan MacIsaac of Bloomberg advises: “Start early, invest in the right spots, and approach retrofits bit by bit.”
Why New York Still Leads
For all the challenges—hybrid work, sustainability mandates, retrofitting hurdles—New York remains the headquarters of the world. Its resilience is unmatched. As Vijay Jesrani of JLL puts it: “New York survived everything. We survived September 11th and we survived the pandemic. We’re always going to survive and thrive.”.”
The market is evolving, but the city’s core strength—its ability to attract talent, foster innovation, and set the standard—remains unchanged. From smart buildings to sustainable practices, the workplaces being built today aren’t just surviving—they’re thriving. And they’re doing it in the only city that can truly call itself the global headquarters of work: New York.
Download the full report
Our report offers more than just market analysis. It provides a roadmap for navigating the complex landscape of commercial real estate in New York City in 2025 and beyond. Through insights from 15 leading industry experts and comprehensive market data, we explore:
- The current state of New York’s commercial real estate market
- Return to office trends and workplace evolution
- Technology’s role in workplace digital transformation
- Sustainability and ESG imperatives
- The city’s retrofitting challenge
- Future outlook and opportunities
Whether you’re a property owner looking to maximize your asset’s value, an occupier seeking to create an optimal workplace environment, or an industry professional aiming to stay ahead of market trends, this report provides the intelligence you need to make informed decisions in a rapidly evolving market.
Download the full report or watch our exclusive interviews to gain the insights that will help you thrive in New York’s dynamic commercial real estate landscape.
