Message from the president of REBNY - by James Whelan

It’s heartening to consider the progress New York City’s commercial market has made since the COVID pandemic. Heading into 2026, New York City’s office market is leading the way nationally in many metrics.

This July, New York City became the first major market to see overall office visitations surpass pre-pandemic baselines. New leasing is up almost 38% year-to-date compared to 2024 and office vacancy has reached a five-year-low. A testament to the collective strength of our real estate, financial services and construction industries, 52 floors were razed along one of the busiest corridors in the world and a new tower opened this fall for JP Morgan Chase at 270 Park Ave., two-thirds larger than its predecessor. As the workplace, scope of technology and reach of the global economy continue to evolve, the innovative and forward-looking ethos of New York City’s commercial real estate industry remains constant. This spirit produces jobs and tax revenues that benefit all New Yorkers.

But momentum alone is not enough. To keep moving forward, we must recognize and address troubling economic indicators and challenges on the horizon.

Hiring during the first half of 2025 was the slowest of any year since 2003 not including a recession or the pandemic. New York lost 8,400 financial services sector jobs during the first eight months of 2025, and was surpassed by Texas in 2024 for total financial sector employees. Since October 2022, the information sector including publishing, film and TV productions, broadcasting, and digital content, has lost 13% of its total jobs in the city.

Job growth unfortunately is significantly stronger in states like Texas and Florida than New York. These trends are spurred by New York City’s anti-competitive tax environment and worsening housing supply crisis. Our competitive disadvantage to states like Texas and Florida will continue to worsen if elected officials proceed with adding to our burdensome individual and corporate tax environment, and while our workforce struggles to find housing amid a historically low 1.4% vacancy rate.

To make sure the commercial sector continues to thrive, REBNY has successfully advocated for economic development incentives like a three-year extension of REAP, Lower Manhattan-REAP and a new RACE program to promote job growth moving forward. There have also been recent policy changes and initiatives that will support new housing supply. State and city officials have put in place a set of rules and programs to encourage the conversion of outdated office space to residential use with the inclusion of below-market-rate rental units. The city, with the governor’s assistance, also secured the largest package of city zoning reforms in over a half-century with the passage of the City of Yes for Housing Opportunity initiative along with several meaningful rezonings advanced by the Department of City Planning.

Much more needs to be done. REBNY will continue to advocate for pro-growth tax and housing policies that are vital for an ascendant office sector. Likewise, we will continue to highlight the success and positive impact of New York City’s commercial real estate sector, as we do with our Commercial Deal of the Year Awards, Invisible Engine Report, Quarterly Brooklyn and Manhattan Retail Reports, and a wide range of committees and professional development programs and events.

We encourage you to join us at the Waldorf Astoria New York on January 22^nd, 2026 for our 130^th annual event. The flagship event of the real estate calendar, REBNY members and New York City civic leaders will gather to celebrate our shared contributions to New York City and kick off the year ahead. The event features honoree presentations for industry leaders who have achieved the highest levels of professional success and served as essential partners to government and civic institutions working to address the challenges New York City faces.

2025 has proven to be a banner year for the commercial sector. Through continued engagement between the industry, elected officials and other stakeholders in 2026, we can address growing concerns in our housing and job market, continue forward momentum and strengthen New York City’s standing as a top destination to live, work and grow a business. 

James Whelan is president of the Real Estate Board of New York (REBNY).