New York City's office market has yet to find its footing—and a slew of new supply poised to deliver this year is likely to make matters worse. The pandemic upended office demand, yet 8.8 million square feet will come into the market this year, the second highest delivery of new office space since 2007, according to research from Marcus & Millichap. So far, the majority of this space is unleased.

Two projects in the Hudson Yards district account for 5.8 million square feet of the new office space set to deliver into the market this year. Both properties are class-A in quality and highly amenitized. Another 1 million square feet of new office space is coming to the Chelsea neighborhood.

The new office supply will likely put downward pressure on rents, which have already fallen during the pandemic. New York's most expensive submarkets Manhattan and Brooklyn have seen the sharpest decline in office rents, which remain below average rents before the pandemic. However, rents in less expensive markets including the Bronx, much of Queens and Outer Brooklyn have already met or surpassed pre-pandemic standards.