RXR Realty, one of the largest office building owners in New York City, in early February became ready to take some extreme steps. For example, the company plans to end debt payments on some of its older Manhattan properties and "give the keys back to the bank."
More recently, though, company CEO and Chairman Scott Rechler said that it has everything to do with the economy and no tie at all to people working from home. As a result, in theory companies would need less office real estate and reduce their holdings.
"Mr. Rechler believes that hybrid work is here to stay and will have some minor negative impact on office demand; however, he noted that return to office mandates and rising office utilization are potential bright spots that suggest tenants still value the office as a crucial place to do business," said Green Street in a summary of a conference call with the executive.
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