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NYC Office Market Values Surpass Pre-Pandemic Levels
Market values for New York City office buildings reached nearly $205 billion in fiscal year (FY) 2025, surpassing pre-pandemic levels, according to New York State Comptroller Thomas P. DiNapoli. These higher market values are being fueled by growth outside of traditional Midtown office districts, including Hudson Yards, Chelsea, Union Square, Soho, Downtown Brooklyn and Long Island City.
“The value of office buildings in New York City is tied to demand for space that comes from new and expanding businesses hiring workers,” DiNapoli said. “Demand for space in new, amenity-rich buildings in and around Hudson Yards, along with the firm growth around Union Square, the Village and business districts in the outer boroughs have helped increase market values, which ultimately will remain a key contributor to the city’s tax rolls.”
Total office market values grew by more than 4% ($8.7 billion) since FY 2020, driven by newer office buildings built after 2010. Based on how the city assesses buildings, increased market values do not necessarily result in higher taxable income for the city. However, the portion of the assessed value on which property tax bills are based went from $66.9 billion in FY 2020 to $71.6 billion in FY 2025, faster than the rate (7%) for market values.
