Press Release
New REBNY Report Finds Class B Office Visitation Has Stabilized as Building Performance Remains Uneven
REBNY Staff
October 14, 2026
Analysis of 200 Class B buildings finds average visitation at 72% of pre-pandemic levels, with 41% of properties reaching at least 80%
NEW YORK, NY — The Real Estate Board of New York (REBNY) today released a new report examining visitation trends and building performance across 200 Class B office properties in Manhattan, Brooklyn and Queens. The Class B sector includes more than 1,500 buildings totaling more than 235 million square feet across the five boroughs, serving a wide range of small and mid-sized businesses across New York City.
Key findings from the report include:
Class B visitation has stabilized. Average visitation currently stands at 72% of pre-pandemic levels. While there has been some variation over the past two years, much of it seasonal, visitation has settled into a relatively consistent range following several years of recovery.
Building-level performance remains uneven. 20% of surveyed properties exceeded their pre-pandemic visitation rate, 21% reached between 80% and 100%, while 32% remained at or below 50%.
Ownership, transit access, and tenant mix are differentiators. Buildings with experienced ownership, strong transit access and diversified tenant rosters generally show stronger performance, while major single-tenant vacancies and contraction in the coworking sector depress a significant share of this segment of the office market.
Midtown continues to outperform other markets. Midtown recorded the strongest visitation among the areas analyzed, reaching 89% of pre-pandemic levels in August, compared with approximately 70% in Lower Manhattan and Brooklyn/Queens. Midtown South lags other areas of Manhattan but has shown signs of improvement.
“Class B office space is not one uniform market,” said Basha Gerhards, Executive Vice President of Public Policy at REBNY. “Many properties have recovered much of their pre-pandemic activity and continue to compete successfully for tenants, while a smaller subset face deeper, longer-term challenges. Policy needs to reflect that nuance and focus on flexibility. Some properties need the tools to reinvest, modernize and attract new tenants, while others need a realistic path to conversion where office use is no longer the best fit.”
Several factors are supporting the broader Class B market, including tightening Class A availability, increased office attendance and the removal of underperforming inventory through office to residential conversions.
The range of performance across Class B buildings highlights the need for a tailored approach to supporting the market. Some properties may remain competitive with investment, repositioning, and tenant recruitment, while others may be better suited for conversion. That distinction becomes increasingly important as regulations such as Local Law 97 take effect and add new considerations for owners deciding whether to reinvest in older office buildings or pursue a different use.
In an uneven market, different buildings will require different tools. Programs such as the Relocation and Employment Assistance Program (REAP) and Relocation Assistance Credit for Employees (RACE) provide incentives tied to business relocation and expansion and can support reinvestment and tenant recruitment at properties that remain viable as office space. Separately, regulatory and tax incentives for office-to-residential conversions have helped address obsolete buildings that are unlikely to compete long term.
The full report can be accessed here.
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ABOUT THE REAL ESTATE BOARD OF NEW YORK
The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, and salespeople; banks, financial service companies, utilities, attorneys, architects, and contractors; corporations, co-partnerships, and individuals professionally interested in New York City real estate. REBNY conducts research on various civic matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes, and other city, state, and federal legislation. REBNY regularly publishes market data, policy reports, and broker surveys.
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