Step Into My Office: New York’s Flight to Experience

Office recovery continues to gain momentum in New York City, particularly in Manhattan, where vacancy fell to 13.1 percent as of April 2026, down 300 basis points year-over-year, while asking rents averaged $69.29 per square foot, according to Yardi Matrix data. New York also recorded the strongest return-to-office performance among major markets, another sign that its office sector is stabilizing.

Demand is also spreading beyond newly built and extensively repositioned properties. The Plaza District has stabilized, activity around Penn Station continues to grow and demand is reaching Midtown South and the Financial District, according to Sage CEO & President Jonathan Kaufman Iger. For existing office buildings, he believes the next competitive phase is shifting from flight to quality to what he calls “flight to experience.”

In this episode of Step Into My Office, CPE’s Olivia Bunescu talks with Kaufman Iger about how that shift is changing the way New York office properties are operated. While an improved workplace experience cannot resolve an unsustainable capital structure or eliminate the need for physical upgrades, he argues that well-maintained older buildings can compete through consistent service, relevant amenities and stronger support for tenants and their employees.

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LISTEN TO: Step Into My Office: Orange County’s Tale of Two Markets

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The conversation also examines how owners can measure the return generated by services and amenities through renewal rates, rents and reduced downtime. Kaufman Iger discusses the role of customer feedback, why operators need to ask follow-up questions before making investment decisions and how Sage’s flagging model is designed to provide a consistent experience across different properties.

Looking ahead, Kaufman Iger expects branded office platforms to become more common as owners seek to differentiate existing assets. While amenities may vary according to a building’s positioning, he believes properties with an operating model that can adapt to changing tenant expectations will have the best leverage to compete.

Here’s what they touched on:

• Why New York’s office recovery is stronger than headlines suggest (01:40)
• Where stronger operations can change an asset’s prospects (04:32)
• From flight to quality to flight to experience (06:00)
• Capital reinvestment and the needs of older buildings (09:52)
• The small details behind hospitality-driven service (14:33)
• Inside Sage’s flagging model and “surprise and delight” element (15:43)
• Measuring the return on amenities and services (20:34)
• How better operations can strengthen tenant loyalty (26:57)
• Looking beyond the first response (29:27)
• Why branded office properties could become more common (35:31)

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Music credit: Sunrise Sprint Office Beats via stocktune.com