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New Partnership Return to Manhattan Offices Survey Suggests a “New Normal”

May 29, 2024

Return to Office Plateaued at 72% of Pre-Pandemic Conditions

The Partnership for New York City surveyed more than 130 major Manhattan office employers between April 19 and May 6, 2024, to gauge the extent to which employees have returned to the office or are still working remotely.

Responses indicate that 56% of Manhattan office workers are at their workplace on an average weekday, which equates to 72% of pre-pandemic attendance. Employers indicated that 78% of workers were in their Manhattan offices on the average weekday prior to the pandemic. Vacation and holidays, business travel, and assignments at client worksites were all contributors to the 78% office attendance prior to 2020.

Current return-to-office rates are not significantly different from the Partnership’s September 2023 survey findings, which found 58% of employees were in the office on the average weekday.

A larger share of employers (38%) expect to increase their New York City headcount over the next 12 months than expect to reduce it (10%); the majority (52%) expect to maintain their current workforce. In contrast to the trend of high-profile tech layoffs countrywide in recent years, 71% of surveyed tech companies said they expect to increase their New York City headcount over the next year—the most of any industry.

The Partnership survey of employers found:

56% of Manhattan office workers are in the workplace on an average weekday as of early May.

  • 11% of Manhattan office workers are currently in the office full time (five days a week)
  • 17% are in four days per week
  • 38% are in three days per week
  • 17% are in two days per week
  • 9% are in one day per week
  • 7% of Manhattan office workers are fully remote

The real estate industry has the highest average daily attendance (83%), followed by law (63%) and financial services (60%).

 

Pre- and post-pandemic, large firms have lower office occupancy than smaller firms.

  • Among firms with more than 5,000 employees, 55% of employees are currently in the office on the average weekday, compared to 59% of employees among companies with fewer than 500 employees.
  • Larger employers tended to have lower in-office rates pre-pandemic; as a result, current office attendance is 77% of pre-pandemic conditions at companies with more than 5,000 employees, compared to 67% among firms with fewer than 500 employees.

Hybrid remains the most popular office policy.

  • 60% of employers have a hybrid schedule in 2024, 34% have a combination of roles that are hybrid, remote, and in the office five days a week depending on the job function, only 5% require daily attendance, and 1% are fully remote.
  • 36% of companies have had issues with employee compliance with their office attendance policy.
  • The majority (67%) of companies have not changed their return-to-office policy in the past 12 months, 30% have increased office attendance requirements, and only 2% have relaxed their office attendance requirements.

The Partnership also asked employers their outlook on their New York City headcount and real estate footprint.

  • About half (52%) of employers expect to maintain their current New York City headcount levels over the next 12 months, 38% expect to increase employment and 10% of employers plan to reduce headcount.
    • 71% of tech companies and 69% of law firms expect to increase headcount over the next year, the highest among surveyed industries.
  • 70% of employers expect their New York City real estate footprint will remain the same over the next five years.
    • A larger share of employers expect to increase their footprint (20%) than expect to decrease their real estate presence (11%).