Class B Office Visitation Settles Into New Normal at 72% of Pre-Pandemic Levels
Class B office buildings across Manhattan, Brooklyn, and Queens reached 72% of pre-pandemic visitation levels in August 2026 and have held that range for two years, according to a Real Estate Board of New York analysis of 200 properties. Midtown performed best among submarkets at 89% of pre-pandemic activity, while Lower Manhattan and Brooklyn/Queens hovered around 70%. Midtown South lagged but showed recent improvement. Twenty percent of properties studied now exceed their pre-pandemic visitation rates.
The city’s Class B inventory totals more than 235 million square feet across 1,500 buildings, housing small and mid-sized businesses, nonprofits, creative firms, and technology startups. Properties with experienced ownership, strong transit access, and diversified tenant rosters recovered faster than buildings hit by major tenant losses or coworking contractions. Forty-one percent of analyzed properties reached at least 80% of pre-pandemic visitation. REBNY executive vice president Basha Gerhards said policy must account for the wide performance gap between buildings that can compete for tenants and those facing structural challenges.
Class A availability has tightened and companies have increased in-office requirements, but those shifts have not yet pushed significant tenant migration into Class B space. Local Law 97 carbon emission limits add new investment costs that will shape decisions about repositioning versus conversion. Tax incentives including REAP and RACE support tenant recruitment at viable properties, while office-to-residential conversion programs offer an exit for buildings with prolonged vacancy.
The divergence between stabilized and struggling Class B assets will determine how this segment contributes to the city’s office recovery. Buildings with steady demand and modernization capacity face a different outlook than properties with structural obsolescence or major vacancy. Owners now must evaluate whether their buildings can still compete for tenants or whether conversion offers a better long-term path.
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