A recent study found that workers in Manhattan are spending $12.4B less than last year on meals, shopping, and entertainment near their offices. The author says this is due to remote work as workers are spending 30% less days in the office. This impacts local businesses that cater to office workers but also city tax revenue.
Based on consumer spending, it’s unlikely that this money is being saved, just spent elsewhere.
Read Remote Work Is Costing Manhattan More Than $12 Billion a Year from Bloomberg.
- NYC office real estate value declined for similar reasons
- On the other hand, not having to commute for five hours is equivalent to a 10 percent raise
- Remote work will become a political issue
Links to this note
New York City’s largest union, District Council 37, is in the midst of negotiating a five-year deal that includes, among other things, protections for remote work. This is the first time I’ve read about large scale union negotiations that talk about remote work and, for NYC with it’s high vacancy rates, remote work could drastically improve staffing.