The movers and shakers of the New York City office market join forces Rudin‘s 3 Times Square on Wednesday for the Commercial Observer Office forum 2026. Despite the competitive nature of their business, the gathered landlords, brokers and executives seemed to be almost in harmony. The warm atmosphere was understood, fostered by 2026 office market is scorching hot.
Gather, kick-started by Hannah Rosenbergsenior portfolio management analyst at US Logistics Partnerthere is a victory lap for 2026 success – record rent, booming technology industry, month leasing momentum and lack of new resources – but not sour records of rising interest rates and decreasing affordability tempered wishes.
The balance between the boom time and the challenges ahead is perhaps best described by Bruce Moslerchairman Cushman & Wakefield‘s global broker and moderator of the forum’s first panel.
“We are in a place that we have not been for a long time, a very healthy place in New York, and now the spillover of everything that is happening in Class A affects the lease-up in Class B, and even the downtown part,” Mosler said. “With that said, we also have rising interest rates, and we have inflation on the horizon.”
Mosler’s introductory conversation with Bill Rudinexecutive chairman Rudin, and Edward Forstadministrator of US General Services Administrationguaranteed familiar ground for office market observers. The best offices are filling up, industry veterans agree, and New York City remains a magnet for talent. Just look at it 350 Park AvenueRudin’s The trophy tower is 1.9 million square feet with hedge funds Citadelor in Rudin 32 Avenue of the Americas property.
“Frankly, the board is sitting for a significant amount of time,” Rudin said. “In the last six months, we have signed a lease for 100,000 feet, and we have 200,000 feet of lease out.”
In addition to announcing the appointment of Cushman & Wakefield’s Mark Weiss served as commissioner of GSA public buildingsForst shared the mission of the federal government to increase the office from one of the top 24 agencies to at least 60 percent. While he has doubts about the agency’s ability to meet the law’s mandate by the end of the year, there will be plenty of opportunities to strike a deal as hundreds of thousands of federal office leases come up for renewal in New York City over the next few years.
The trio’s conversation kept coming back to New York City’s ability to attract talent — including people as talented as the legendary songwriter. Paul Ankathat Rudin ran and secured a selfie with Tuesday night.
“Companies want to be where the talent is, and the talent is here,” Rudin said. “Now, is that true from God? Absolutely not.”
Next came the keynote panel of the day, Inside the Office Deal of the Year, which Dino Fuscochief operating officer Silverstein Propertiesdiscuss the machinations and implications of American Express‘ 2 World Trace Center give a deal The panel was moderated by Jonathan Mechanic, Fried franksreal estate chairman.
Message on the back commitment of 2 million square feet of financial giants loud and clear to Fusco: Lower Manhattan is strong. Fusco pointed out that the area’s office vacancy, a weakness for years, is now a magnet for tenants being pushed out of Midtown.
Fusco and Mechanic discuss the relatively recent cultivation of downtown as a 24/7 community that can attract a younger workforce. Fusco uses the example of a consulting firm McKinsey & Company moving down to 3 World Trade Center eight years ago.
“They moved to 3 World Trade Center because the people they want to hire for long-term jobs are 22 to 35-year-olds,” Fusco said. “They, now – my children are in the workforce – want to live and work and have fun in the same environment.”
Praise for Lower Manhattan flowed into the following panel, titled From Reset to Rebound, in an advanced conversation moderated by Jonathan W. Knipeco-chairman of real estate Cozen O’Connor.
Dan Birney, RXR‘s senior vice president and leasing director, said the company’s Financial District office tower 32 Old Slips is on track for about 350,000 square feet of leasing volume this year. The momentum there and throughout Lower Manhattan came as a welcome surprise.
“We haven’t done a significant deal since pre-COVID,” Birney said. He added that prebuild is a hot ticket item in the market, especially in Midtown South, and that he will focus on office traction in Brooklyn’s waterfront next year.
Office rent will continue to rise in pace with the rebound, he said Peter Concernedchairman and president of JLLNew York area. That doesn’t mean the building will be cheaper, he said David Levinsonchairman and CEO of L&L Holding Companyeven with helpful tax abatements.
“This is a Union city, it costs a ton of money, and it’s a very heavy bureaucracy,” Levinson said. “I built it outside of New York City. What I built in Miami in 20 months would upset everyone in New York.”
The event’s fourth panel, Key Workplace Trends, takes a look Josh Winefskypartners in HSF KramerPanelist questions on modern facilities that actually attract tenants and talent.
Although today’s market is full of tight timelines, David Goldstein, Savills‘ The president of the tri-state region of New York, said the occupiers began to move to long-term planning as space became scarce, which he called “a more scientific approach to labor and location strategy.”
Rising rents are also driving the use of coworking, pre-built spaces and flexible rental structures for tenants, he said. Chris Rothchief operating officer Global Holdings Management Group.
“The good old mix and beyond is a great way to keep the lights on while getting good rent, reducing the amount of capex going out, and keeping everyone happy,” Roth said.
When Sage CEO Jonathan Iger has found midsize companies’ decisions remain largely driven by C-suite preferences, “flight to experience” shifting focus from amenities to high-quality services.
The Reverdie Groupthe founder Aisling Gregory show her team’s efforts Woolworth Building to manage hospitality and brand partnerships, activate spaces with limited capital costs and create a “self-sustaining and rich ecosystem.” That approach was reflected in IBM‘s consolidation of 10 office locations into one site at 1 Madison Avesaid Jennifer StewartIBM’s global head of real estate.
Next, the executive is included Peter Brindleyhead of real estate Property of Elecorand Gerry Lifrierisenior director of international real estate Omnicom Groupconvened to discuss the 2026-2028 rollover wave in a panel entitled The Great Lease Reset. This panel is moderated by Danielle Leserpartner and chairman of business litigation in Morrison Cohen.
For Class B office holders, like Michael T. Cohenthe principal of the school Williams Equitiesand Ryan Cashexecutive vice president at Empire State Realty TrustThe current market has proven that Class B is far from obsolete, but the challenge ahead lies in delivering improvements while still being financially sound.
“It requires a real measure of conservatism and a long-term approach,” Cohen said. “But you have to make sure the money is there.”
Lifrieri said Omnicom Group is seeking shorter, more flexible terms, and that means fewer 10-year leases.
“We don’t know where the market is going, and we have to be nimble,” Lifrieri said.
The penultimate morning discussion, Reposition, Repurpose or Redevelop, moderated by CO’s own editor-in-chief, Max Gross. The choice between the three Rs comes down to capital selectivity, he said Kevin Hoomanage the partner Cove Property Group.
“From a capital perspective, the investable universe has shrunk,” Hoo said.
“If you time the market really well, even at the lower end of the spectrum, there will be reasons to reposition and do well, but I think we’re sticking to our knitting,” he added.
But Brian SteinwurtzelCEO and principal Development of GFPfind opportunities in piles of damaged capital and “zombie buildings,” available ventures and debtors willing to deal.
Keith DeCostervice president of market data and policy Real Estate Council of New Yorkstates that more owners are willing to put more capital into buildings now, pulling some office buildings out of consideration for conversion. Steinwurtzel said such efforts depend on rent.
“If you have a building that can be repositioned, highly amenitized, and rent that can get well north of $80, then the tenant improvement package to make the place beautiful is worth it. There is capital that will support,” Steinwurtzel said. “The biggest challenge is if you have rents that are less than $80 a foot.”
Adaptive reuse is a large part of KPF portfolio, he said Andrew Wernerdirector at KPF. The panelists agreed that adding air, light and access to the outdoors is essential to repositioning the building. A dynamic workplace for hybrid scheduling is also desirable, he said Keith Fordsmansenior project executive at Gilbane.
“They are reprogramming to expand capacity in the same square, or they are looking to complete the renovation and stop moving assets,” said Fordsman.
Grossman accepted Steven Rottervice chairman of the executive Newmarkto essentially close the forum, which is mostly focused on the AI wave. While AI rentals are still only 12 percent of the market, Rotter said, the company is growing exponentially.
“We have a client who has zero employees today, will grow to 40 employees in six months, and then called us there and said we need 100,000 feet by Tuesday,” Rotter. “They’re growing fast, and the market is going crazy in SoHo, the West Village, Meatpacking, and it’s creating a lot of chaos in the market.”
While San Francisco is still the top dog in the AI industry, Rotter described the West Coast city as a hub for early-stage development, while New York is a hot spot for mature companies.
AI tenants want facilities for talent retention and proximity to venture capital where the industry is growing, Rotter said, and his demand leading to a bidding war and off-market offers. Brokers have gone to great lengths to track corporate fundraising to find “shadow opportunities.”
Rotter doesn’t believe AI’s rapid growth represents a bursting bubble, but says high valuations don’t always mean tech companies are creditworthy. But what about AI disruption in Rotter’s own industry?
“People joke with us, ‘Will AI take over real estate?'” Rotter said. “I told you that unless ChatGPT can bully and negotiate a better rent with the landlord, then hopefully our project will be safe.
Emily Davis can reach it edavis@commercialobserver.com.