Migration of Businesses Out of New York City Has Leaders Beginning to Worry

As coronavirus cases continue to mount to new record highs, many Americans have been fleeing the city life for alternative housing areas that carry less risk. This sudden migration out of city centres is now being followed suit by companies that have been relocating their offices out of city centres in order to better accommodate their employees.

According to a recent report released by the Partnership for New York City which is responsible for convening some of New York’s biggest companies, approximately 16% of office employers have expressed plans to relocate employee positions out of the state, while another 25% plan to decrease their office space in the city by at least 20%.

Such alarming statistics have amounted to concerns among city officials. who have been devising plans to move along the city’s recovery efforts following massive COVID-19 outbreaks. Even prior to the coronavirus pandemic, there was already a population decline in New York; now with the continuation of outbreaks however, the migration is being significantly accelerated, much like what was witnessed back in the 1970’s.

With such a sudden decline in population, the city would suffer some significant setbacks. Dan Doctoroff, who is the former deputy mayor for economic development during the Bloomberg administration, worries that such a large migration out of the city would cause a perpetuating cycle of deteriorating taxes bases and reductions in essential services, which in turn would spark further relocations out of the city.

Information for this briefing was found via Crain’s New York. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.