High-End Amenities in Office Buildings? These N.Y. Tenants Say No Thanks.

As the Manhattan office market continues to recover from the pandemic-induced slump, a surprising trend is emerging: tenants are opting for older buildings with more modest amenities over high-end properties with luxurious perks. Leasing activity for older buildings, which were hit particularly hard during the pandemic, is gaining momentum, indicating that the overall office market in Manhattan is on the upswing.

According to recent reports, many tenants are prioritizing affordability and location over fancy amenities, such as rooftop gardens, high-end gyms, and gourmet cafeterias. This shift in priorities is likely driven by the changing nature of work and the increasing costs associated with maintaining a presence in Manhattan.

Rather than being swayed by gleaming finishes and upscale amenities, tenants are focusing on finding functional, efficient, and cost-effective office spaces that meet their needs. This trend is a boon for older buildings, which often offer more straightforward, no-frills office spaces at a lower cost.

The resurgence of interest in older buildings is a strong indicator that the Manhattan office market is regaining its footing. As more tenants begin to occupy these spaces, it’s likely that we’ll see a corresponding increase in demand for supporting services, such as restaurants, cafes, and retail shops.

While high-end amenities may still be a draw for some tenants, it’s clear that many are reevaluating their priorities and opting for a more practical approach. As the office market continues to evolve, one thing is certain: tenants are driving the demand for flexible, functional, and affordable office spaces that meet their unique needs.