According to New York State Comptroller Thomas P. DiNapoli, the market values for office buildings in New York City have reached a record high of nearly $205 billion in fiscal year (FY) 2025. This surpasses pre-pandemic levels and is largely due to growth outside of traditional Midtown office districts, such as Hudson Yards, Chelsea, Union Square, Soho, Downtown Brooklyn and Long Island City.
DiNapoli explains that the demand for space from new and expanding businesses hiring workers is what drives the value of office buildings in NYC. The rise in market values can be attributed to newer office buildings constructed after 2010 that offer attractive amenities. While this increase does not necessarily result in higher taxable income for the city based on how they assess buildings’ worth, it has led to an increase from $66.9 billion to $71.6 billion (a rate of 7%) on which property tax bills are calculated.
Overall,the surge in NYC’s office market values serves as a positive sign for its economy and will continue contributing significantly towards its tax rolls.
