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5110723, 1249 PM ‘Opinion | New York s Ful of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times
OPINION
26 Empire State Buildings Could Fit Into New York's
Empty Office Space. That's a Sign.
Gowran 2 D Qas
‘By Edward L Glaeser and Carlo Ratt
Photographs by Gus Powell
Wr Geter ste chair ofthe economies department a Harvard ad an author of“Surval of
‘ha Gy? Me Rat's the director f te Senseable Cty Lab a MLL. and an author of"The City
[New Yorkis undergoing a metamorphosis from a city dedicated to
productivity to one built around pleasure. Many office buildings stil feel
eerily empty, with occupancy around 0 percent of prepandemic levels,
harming landlords and the local economy. But 56 million people visited
New York last year, making Fifth Avenue in December feel as crowded as,
Ipanema Beach during Carnival.
‘The economic future ofthe city that never sleeps depends on embracing
this shift from vocation to recreation and ensuring that New Yorkers with
wide range of talents want to spend their nights downtown, even ifthey
are spending their days on Zoom. We are witnessing the dawn of a new
kkind of urban area: the Playground City.
hitps Aww. nytimes, coninteracve/2023/08/10iopinioninye-ofee-vacancy-playground-ely hil am5110723, 1249 PM ‘Opinion | New Yorks Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
Empire State Bulling
200.118 square fot
ieee space
{In downtowns from Chicago to Los Angeles, the physical layout of the
20th-century city is clashing with the new economy. Since the 1920s,
single-use zoning has divided our cities into separate neighborhoods for
home, work and play. Worksfrom-home and Netflix have made these
distinctions irrelevant, but our partitioned urban fabric has yet to catch up,
‘To create acity vibrant enough to compete with the convenience of the
internet, we need to end the era of single-use zoning and create mixed-use,
‘mixed-income neighborhoods that bring libraries, offices, movie theaters,
grocery stores, schools, parks, restaurants and bars closer together. We
‘must reconfigure the city into an experience worth leaving the house for.
‘Streets once filled by commuting crowds can be reinvigorated by those
‘who really want to be there.
Office vacancies continue to climb oz
Percentage ofall office space that is vacant, saxeofpancee
New York city
‘This would not be New York's first metamorphosis. Although the
‘seems set in stone, its soul is essentially protean, In its 400-year history,
Dutch fur traders, Russian garment entrepreneurs, Mohawk ironworkers
and African American jazz musicians sought their fortunes in its busy
streets — and each left a mark on its character.
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‘Opinion | New York s Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
First, the city’s deep harbor and access to the Hudson made it America’s
dominant port. Industries like sugar refining and book publishing
clustered around the wharves because they depended on water-borne
imports, such as the pirated English novels that fueled New York's early
publishing industry.
‘Then came the railroads. The Rutgers economist Jason Barr has debunked
the urban myth that New York has two skyscraper-strewn business
districts, Wall Street and Midtown, because of the placement of bedrock. In
fact, New York has these two districts because development concentrates
near trade,
‘The older district, Wall Street, was tethered to the ancient port. The newer
‘one, Midtown, grew up around the rail stations. The city's manufacturing,
‘might sprang from its location at the nexus of rail and sail. The age of the
railway was even more important to Chicago, with its gigantic Union Stock
‘Yards, built by a consortium of nine railroad companies to facilitate the
flow of Western beef into Eastern bellies.
But for over a century, the transportation-related advantages of older
cities like New York and Chicago have been waning. Container ships and
the proliferation of highways meant that by the 1960s, New York was no
longer an eflicient place to mass-produce clothing — or almost anything
else. The growth of Los Angeles, in contrast, has been fueled by its
‘Mediterranean climate and California's natural beauty.
Los Angeles’ vacant office space could
130.7 US. Bank Towers
US. Bank Tower
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200%
‘Opinion | New York s Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
‘The collapse of manufacturing sent New York into an existential crisis in
the 1970s and intensified middle-class fight to the suburbs. (One bright
‘spot, and a lesson for the future: Abandoned industrial lofts provided
inexpensive living space for thousands, many of whom ignored the zoning,
‘codes that made their homes illegal.) New York emerged from this slump
by reinventing itself around knowledge industries like financial services.
Globalization delivers huge returns to smart investors, and we get smart
by being around other smart people.
‘The sheer size, density and connectivity that New York accrued in
previous eras became its saving grace. The 1987 movie “Wall Street" is a
{able about how the fictional Bud Fox learned unscrupulous shortcuts to
‘wealth through face-to-face contact with an older mentor. By 2008, 44
percent of Manhattan's total payroll went to people working in finance and
‘Manhattan's economy depends on high-income workers in finance and technology
Payrls by inustryin Manhattan Payrolisby incusry in Houston
100%
Professional ana
{ectnia seriees
Finance differs from older industries because nothing intrinsic kept
financial firms in New York, meaning the city could retain its dominant
industry only by improving its quality of life. That helped lead voters to
elect management-oriented mayors, including Rudy Giuliani and Michael
Bloomberg, who focused on the city's core services, especially policing. AS
crime levels fell, the city’s intrinsic edge in providing fun re-emerged. In
the 2000s, New York's image was captured more by the frivolity of “Sex
and the City” than the grittiness of “Taxi Driver”
But unlike in earlier eras of urban success, this time New York did not
produce enough housing to keep up with demand, The cost of living,
skyrocketed, By 2008, one of us was comparing New York wistfully with
Houston, which remained affordable for ordinary Americans because it
Duilt aggressively. Manhattan became dependent on its elite earners — a
large share of the tax base came from a tiny proportion of the population
— who were also the only group who could afford to live in its increasingly
expensive neighborhoods.
ant5110723, 1249 PM ‘Opinion | New York Is Ful of Empty Offiees After Covid. Make Way forthe Playground City. - The New York Times
{in 1980 the futurist Alvin Toffler argued that information technology would
‘make urban offices largely obsolete, with workers using residential
lectronic cottages” instead, For 40 years, he was wrong. Then, in an
instant, it seemed that he was right. The office tower, ike the port and the
train station before it, had its relevance challenged by a competing
technology: Zoom. In the early days of the Covid pandemic, remote work
was expected to last only for afew weeks or months, but now it seems
clear that some mix of in-person and fully remote work is here to stay. The
office has its advantages, but many people are willing to give them up for
the convenience and flexibility of working mostly from home.
‘This sudden shift was a body blow to New York, Many offices remain
‘empty, and the city lost more than 300,000 inhabitants from 2020 to 2021
‘No other American city experienced such a large numerical decline. Over
the same period, Houston lost only 12,000 people, although the global
commercial real estate services company JLL reports that Houston's office
vacancy rates are now even higher than New York’.
Houston vacant office space could fil
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‘Opinion | New York s Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
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cemcesooce
Yet even as we do not make a full return to the office, the social and
‘economic need for us to come together in cities has not gone away. Our
research at M.LT. shows that when we replace in-person interactions with
Zoom rooms, our social lives become narrow and homogenous. Parallel
research at Microsoft found that “Firmwide remote work caused the
collaboration network of workers to become more static and siloed, with
{ewer bridges between disparate parts”
‘We may have a few close friends online, but we cannot sustain a network
‘of weak ties — the casual acquaintances we run into in the halls or on the
bbus. We are exposed to less diversity of background and thought, and
{ideas flow less freely. More permanent remote work could stunt innovation
‘and economie growth as it shrinks our social fabric. Ifthe office is not
returning to its central position in our lives, then humanity, as a social
species, must find new opportunities for mixing in physical space.
Fortunately, the data shows that these alternatives are already emerging.
Although mast measures and narratives describe a city struggling to
recover its prepandemie mojo, there is a visible bifurcation between office
and city life. Kastle Systems’ Back to Work Barometer shows that unique
‘card swipes in some of New York's fanciest offices remain at less than 50
percent of prepandemic levels. But track the same ZIP eades with mobile
phone data from Safegraph, which records individual visits to the area
rather than office occupancy, and the picture is more encouraging. There is
still some decline, but itis not nearly as steep. Repeat this analysis in cities
‘across the nation, and you find the same result. Offices may be empty, yet
streets are astir,
Chicago's vacant office space cau ill
15.3 Wills Towers
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emt5110723, 1249 PM ‘Opinion | New York s Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
Ws Tower
ecessace
‘Much of this revival comes from the release of pent-up demand for
tourism: Visits to New York rose 71 percent from 2021 to 2022. New York’s
hotel occupancy topped 90 percent in December — leading the nation,
‘More can be done to persuade city residents to leave their immediate
neighborhoods. If people do not need to go downtown for wages, they must
instead desire to go there. A place to live and play rather than work: This
is the dream of the Playground City.
‘This idea is hardly new, Across the world, variables that indicate places of
pleasure have predicted urban success since the 1970s. Street-level
infrastructure — restaurants, parks, theaters and public squares — has
Jong served as a networked urban parlor. In 17th- and 18th-century
London, coffechouses brought together artists, politicians and scholars
such as Joshua Reynolds, Edmund Burke and Samuel Johnson.
Essentially, coffeehouses were shared living rooms that enabled chance
interaction. Johnson deserves credit for best articulating the idea of the
Playground City: “When a man is tired of London, he is tired of life; for
there is in London all that life can afford.”
itpsawww-nytimes. cominteractvei2023/08/1Olopiioninye-ofce-vacancy-playground-cy hil mt5110723, 1249 PM ‘Opinion | New York s Ful of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
‘The Playground City differs from the industrial or the office city because it
is focused on the jobs of everyday life. It differs from the Georgian London
enjoyed by Johnson and Beau Brummell because it offers joys to be
relished by the many, not just the elite few, In a Playground City, mixed
use neighborhoods that tic life, labor and leisure together generate what,
the New York urbanist Jane Jacobs calls the “sidewalk ballet,” a productive
and playful dynamic in which a diversity of different users come and go at,
all hours,
‘The transformation toward the Playground City will not happen on its
‘own. New York will need to recognize that the office market, especially its
lower end, is likely to face years of vacancies and that the city’s future
depends on being able to attract and empower new residents — the
creative class and everyone else — who might be tempted to settle down in
other cities that are more affordable and convenient, To address low
commercial occupancy rates and struggling businesses, Mayor Bric
Adams and Gov. Kathy Hochul convened the “New” New York Panel,
which released its report in December. We contributed to the
conversations that culminated in the report and would like to elaborate on
six crucial lines of action,
1. Learn from big data, experimentation and randomized-control trials
‘There are many tools for potentially reviving urban centers — investing in
culture, reducing the regulation of recreation, spurring residential
development, improving public transit — but we don't know what will
‘work where. These initiatives need to be refined through experimentation,
data collection, analysis and adjustment.
2. Jettison regulations that hinder urban innovation
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‘Opinion | New York s Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
‘The most obvious obstacle is single-use zoning, which has separated
‘where people lve from where people work since the 1920s. Our research
shows New York neighborhoods without zoning monoculture are more
‘walkable and that zoning reforms must be carried out carefully to avoid
increasing socioeconomic segregation. We need flexible zoning to
integrate the city, spread the power of play across every neighborhood and
allow offices to be converted into residences.
3. Reinvent the building core
Even without red tape, remaking a city from the empty but brittle shells of
2oth-century office towers will not be easy. Modern office towers have
deep floor plans meant to maximize square footage, but units in residential
buildings need windows and their natural ventilation and daylight. To
achieve conversion at scale, we must therefore look past the architecture
of the traditional apartment. Deep-core office buildings could be converted
{nto new kinds of spaces optimized for co-living and co-working.
Bedrooms, with windows, could lin the perimeter while common areas for
cooking, laundry, work, exercise and socializing could fill the middle. Such
arrangements could also help meet one of the social challenges of our
time: loneliness.
4 Animate the street
For the Playground City to draw people away from the instant gratification
of the Internet, governments must support a dynamic and scene-specitic
life at ground level, During the pandemic, municipal governments armed
‘with nothing but yellow paint remade the streets and brought about a
revolution in pedestrianization and outdoor dining.
‘The urban playground should be constantly rearranged: Streets could be
cleared for weekends, annual festivals and temporary exhibitions; food
bazaars and pop-up shops could multiply. Movie theaters struggle to
compete with boundless streaming catalogs available on cheap 4K
televisions. More outdoor screenings on summer nights could tip the
balance back toward collective experience. These easy interventions are
especially useful for garnering public support. To draw people into the
Playground City, we need to show, not tell.
ont5110723, 1249 PM ply Offces Aer Covid. Make Way forthe Playground City. - The New York Times
5, Level the playing field between e-commerce and neighborhood
businesses
E-commerce enables convenient shopping, butit also destroys brick-and-
‘mortar businesses, especially the small businesses that support local
economies and give streets their distinctiveness. The multiplication of
‘small, rapid deliveries causes congestion and increases emissions. E:
‘commerce companies avoid paying real estate taxes in the areas they
serve and sometimes state and local sales taxes as well, although there
hhas been progress in recent years. To sustain a vibrant street life,
‘municipalities should fairly tax e-commerce for the congestion it creates
and lower their retail sales taxes, making local shops more competitive.
6. Engage citizens
Governments should empower citizens to participate directly in making
the Playground City. The generation that grew up on social media has
developed a fierce, collective yearning to come together in the real world,
‘shown beautifully in the playful Facebook group New Urbanist Memes for
‘Transit-Oriented Teens. We should harness this energy. The office was a
factory where human beings were inputs, packed into cubicles to
‘maximize their economic output. The Playground City sees people as both
a means and an end, and it should involve them in the process ofits
creation,
Citizen engagement must include support for populations at risk of being,
‘marginalized by the transition. A healthy city makes space forthe rich and
poor alike. It generates positive interactions among people ofall income
levels by providing accessible, beautiful and free or low-cost public and
private spaces, including plentiful and affordable housing.
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‘Opinion | New York s Full of Empty Offices After Covid. Make Way forthe Playground City. - The New York Times,
New York needs to attract the rich and talented, but the poem beneath the
‘Statue of Liberty reminds us that the city's greatness comes just as much
from being the landing site for “your tired, your poor, your huddled
‘masses” that it is now pricing out. One way to balance these two
‘governmental imperatives — to help the poor and generate tax revenue
from the affluent — isto view the city as a for-profit realestate
development company wholly owned by a nonprofit poverty-alleviation
‘entity. The for-profit company focuses on keeping the city attractive to the
rich, and the revenue it generates gets plowed into schools and support for
the poor.
Cities thrived before the office was invented and can stil triumph after the
office has gone. Unfettered by cubicles and 9-to-8 jobs, we could achieve,
‘more comprehensively and more joyfully than before, the city’s primordial
aim: bringing people and ideas together. We need this integrative urban
ower now more than ever as social fragmentation, political polarization
‘and economic inequality pull us apart, As we face the climate crisis, the
allure of activity-rich neighborhoods could promote sustainable lifestyles.
‘As we fight segregation in all its forms, dense cities ean bridge our
divisions. As we struggle with loneliness, an irresistibly vital street life
could drag a generation of people off their phones and back toward one
‘another.
iustraton by Kaye Fielough. Graphs by Jeremy Ahkenas ans Quetrang Bu
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