City Unveils “Race for Space” Strategy to Energize Office Market

Image Courtesy of NYCEDC

“Race for Space” Strategy Offers Bold Vision to Energize City’s Office Market, Attract National and International Companies as Anchor Tenants to Offices, Advance Ambitious Goal of 50 Million Square Feet of Total Leasing by End of 2025, and Create Thousands of Jobs Over Next Three Years

Announcement Comes as City Celebrates Breaking All-Time High Jobs Record for Eighth Time Since Start of Administration, Unemployment Down Across All Demographics

“Race for Space” Kicks Off “Jobs Week,” Highlighting City’s Effort to Ensure Opportunity Reaches Every Borough, Block, and Neighborhood, and Working-Class Families Have Access to Good-Paying Jobs

The “Race for Space,” a comprehensive strategy to revitalize and reimagine office space across the five boroughs and double down on a commitment to bringing New York City’s economy back by creating thousands of new jobs for working-class New Yorkers. Race for Space would attract both national and international companies to become anchor tenants—large, well-known businesses in search of large commercial space—at offices, advance an ambitious goal of 50 million square feet by end of 2025, and create thousands of jobs over the next three years. The comprehensive strategy meets the challenge of vacant office space across the city directly with a range of bold tools to attract new and growing businesses to New York City, while also renovating existing commercial spaces. Today’s announcement comes as the city, last week, celebrated breaking the all-time high jobs record for the eighth time and unemployment going down across all demographics.

“Race for Space” contains several programs that will create jobs, attract talent, and address the city’s vacant office space, including by:

• Launching a pilot “Relocation Assistance Credit for Employees” program (RACE), which will incentivize out-of-state companies to move to New York City and sign leases for at least 20,000-square-feet of space at qualifying office buildings. Under this new program, the Adams administration is targeting 15 new anchor tenants by the end of 2025, activating over 800,000 square feet of office space and bringing an additional 3,000 jobs to New York City. The existing Relocation and Employment Assistance Program (REAP) incentive program will also be extended for an additional five years. REAP offers business income tax credits for relocating jobs from outside of New York City or below 96th Street in Manhattan to designated locations above 96th Street in Manhattan or in one of the other four boroughs.
• Creating a new “International Landing Pad Network,” which will support growth stage international companies in their expansion to New York City, attract new sources of innovation and investment, and grow jobs for New Yorkers.
• Opening a new application round for the Manhattan Commercial Revitalization Program (M-CORE) program through May 1st. Launched in 2023, M-CORE was a key recommendation from the ‘New’ New York panel’s “Making New York Work for Everyone” action plan—a set of 40 initiatives to reimagine New York City’s commercial districts as vibrant 24/7 destinations. M-CORE aims to convert up to 10 million square feet of aging and vacant office space to amenity rich, high-quality office space that meets the demands of the current workforce. The program is already supporting the overhaul of over 1 million square feet of office space at 850 Third Avenue and 175 Water Street. Last week, the New York City Industrial Development Agency confirmed the latest M-CORE awardee, the Hahn Kook Center, an affiliate of the Korean International Trade Association located at 460 Park Avenue.

The proposed set of changes will help businesses find space and grow, support entrepreneurs and freelancers, boost growing industries, and enable more vibrant streetscapes and commercial corridors.

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city’s future economy. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.