New York City Market Report
New York Continues to Recover From Health Crisis and Economic Shutdowns; Stable Through the First Half of 2020, Commercial Property Fundamentals Face Hurdles Ahead
Comprehensive shutdowns curb coronavirus at cost to employment. An earlier and more stringent lockdown than experienced in many other parts of the country placed a heavy initial weight on New York City’s economy. Between February and April, the metro’s employment base contracted by 20 percent, exceeding the national rate. A more deliberate approach to reopening has also hindered rehiring. As of August, New York has recovered about 27 percent of jobs lost in the spring, compared with the U.S. measure of 48 percent. Strict health precautions have, however, successfully curbed the rate of coronavirus infection. Fewer than 100 cases were being reported daily per borough in September, a drastic change from earlier in the year when the market was the nation’s hot spot. If this level of containment holds, it bodes well for the market’s future employment growth.