With more than 8 million people and one of the world’s strongest economies New York City is a home to many of the world’s most powerful businesses. However, the global COVID-19 pandemic has shifted the way the world does its business, and the way people work. In most cases, opening your office in New York is a great landmark on the way to the top, but times are changing and it might be time to call your commercial movers NYC, and decide if you want to move your office from NYC in 2022.
Things are shifting in New York. Many companies are switching to hybrid work systems.
While New York City is home to the headquarters of most of the world’s corporate giants, the largest stock exchange, and more billionaires per capita than any other city, things can change. The COVID-19 pandemic hit everyone hard, and it shifted the way people work. More companies than ever are adopting hybrid work models, and abandoning office spaces.However, before you call local movers NYC, it’s not all about business. An important factor in whether you should move your office from NYC in 2022 is the amenities that New York provides. Culture, dining, entertainment, prestigeare all important factors in maintaining your office in New York. The city is also a major talent recruiting pool, that you can’t easily replace. In addition, your team can enjoy many of the pleasures of New York if your office is still open there.
Everyone from finance firms to tech startups have their offices in New York. Midtown Manhattan alone represents the biggest central business district in the world. While Madison Avenue is the world’s capital of advertising. Brooklyn and Hudson Yards are budding hot-spots of new ideas and tech innovation. Journalism, Mass media, publishing, digital media, design, fashion all are thriving in New York.Why do we mention this? Well, business breeds business. Networking, connecting with other industries, all play a major factor in the success of a company. The amount of opportunity alone is a good reason not to move your office from NYC in 2022.In addition, certain industries are predicted to accelerate their economic growth throughout 2022. If you’re a part of accounting, education and health services, systems software research or software development, you should factor in the potential that staying in the city provides.
Now, this is one of the main reasons you should move your office from NYC in 2022. The Big Apple is the world’s business center, and due to the insanely high demand for offices in New York, it has some of the most expensive office spaces in the world. In addition, the usual lease term in NYC is 10 years, and they tend to come with steep upfront costs. That makes it hard for smaller and mid-sized businesses to get a foot in the door, so to speak.
There are many factors to consider when determining whether to move your office from NYC in 2022.
The Partnership for New York City, an economic development group, has found that 22% of financial service companies are planning to reduce their headcounts in New York City in the next five years. Overall, around 13% of “major employers” said that they expect to reduce their workforce in the city.In addition, more than 30% of companies are predicting that they will reduce the size of their office spaces in the next five years. 86% of accounting firms, 43% of public relation agencies, and 38% of tech companies are shifting to a hybrid work system and downsizing their offices.Around 80% of employers believe that the COVID-19 pandemic has permanently changed remote work practices, and 47% of them think that their workers will stay remote for more than three days a week, even after the pandemic ends.Employers expect that, by January, less than half of their workforce will be in the office on an average workday. It is no wonder, considering that only 13% of employees are expected to be working full weeks in the office.
While rent prices have gone down in January, the trend seems to be reversing. Even though large companies are abandoning their offices.
Even though it might be wise to start calling Capital City Movers NYC, let’s go over some important information first. The financial industry wants to add more jobs in lower-cost, lower-tax cities. They’ve been wanting to do that for many years now, but despite the significant growth that is happening in Western and Southern cities, New York still remains the financial capital of the world. While the COVID-19 pandemic has led to a shift in how Americans work, and where they need to live.Certain studies suggest that, during the pandemic, hundreds of thousands of New Yorkers have fled the city for cheaper, more spacious suburban areas. Although, it is not clear at all how many people left, and how many people mean to stay in their new locations.However, the trend seems to be reversing. Due to the aforementioned reasons, the median rent in Manhattan has dropped to a low of $2,750, with landlords offering enticing deals to their potential tenants to make them sign leases. Unfortunately, that was in January, since then the prices have skyrocketed as much as 70% for certain properties.Another important factor to consider is the trends that large companies are setting. State Street, one of the world’s largest financial companies, has fully embraced the hybrid work model and is subleasing more than 50,000 square feet of its offices. Although their lease expires in 2025, this trend seems likely to continue with other large companies.
If you make the choice to move your office from New York, there are plenty of reliable movers NYC, to help you out. However, deciding whether to move your office from NYC in 2022, is a complicated affair. It depends largely on your business, how it needs to operate, can it shift to a hybrid work model etc. So, weigh your options carefully, and we wish you the best of luck.