Tax Revenues From New York City Office Buildings Rise, Despite Vacancies

Even as office buildings in Manhattan struggle with high vacancy rates, the assessed market value of New York City office buildings has continued to rise, according to a new report. The buildings’ value has rebounded from the sharp decline caused by the pandemic. The overall value of the city’s towers has climbed to $204.8 billion, up from $202.3 billion in 2020. However, the reality for a swath of office real estate in New York City is different, with buildings being sold at steep discounts, some at half of what the previous owners paid. The report focuses on the market value of buildings as assessed by the city’s Department of Finance for property-tax purposes, which may differ from the actual sale value.