As we head into 2026, a critical question we hear from small to mid-market office owners is whether the resurgence of Manhattan office truly benefits everyone—or mainly rewards the top tier. Class A space continues to dominate leasing activity, and rising rents are widening the gap between prime and non-prime assets. How will small and mid-market owners adapt before this divide becomes even harder to close?

Despite a shaky economy, rental demand remains incredibly high, putting 2025 on track to be one of the best years for move-ins since 2000. To keep buildings full during these uncertain times, where are landlords focused? We at NYCCREA share it here.

As the City Council wrapped up its final meeting with its current membership, we watched closely as several housing and real estate measures passed, leaving a lasting imprint on New York City’s housing market. The timing couldn’t be more critical: the incoming mayor, Zohran Mamdani, aims to build 200,000 affordable units over the next decade, but these bills could make that goal more difficult.

The surge in office-to-residential conversions confirms what we’ve been advising clients since the pandemic. New York’s office market is not just cycling—it’s recalibrating. Conversions won’t singlehandedly solve a 22%+ vacancy environment, but they are a meaningful pressure valve, removing obsolete supply, stabilizing challenged assets, and adding much-needed housing.

Multifamily and industrial remain strong pillars, office is stabilizing in pockets, and private buyers continue to set the pace. As long as confidence holds and financing remains accessible, we expect this momentum to carry through in 2026.

New York’s mall evolution isn’t just about retail decline. It’s about rediscovering the potential of land that has anchored communities for decades. As enclosed malls fade, mixed-use ecosystems rise — places that combine housing, health, entertainment, and everyday conveniences into a single, connected environment.

Many CRE stakeholders struggle to balance profitability with long-term value creation, community impact, and adaptability to regulatory and environmental pressures. This is where urban design becomes essential. Urban design is the deliberate shaping of buildings, streets, and public spaces to create functional, beautiful, and well-connected environments.

We walk through the three core manufacturing districts—M1, M2, and M3—and what each means for today’s CRE environment. While historically designed to separate industrial activity from residential neighborhoods, these districts have evolved dramatically. And as the City of Yes zoning updates roll out in 2025, we expect even greater shifts in how these districts shape commercial real estate.

The C5–C8 commercial districts illustrate the full spectrum of New York City’s economic geography — from sky-high office towers to ground-level service hubs. For commercial real estate professionals, understanding these districts is more than an academic exercise — it’s a strategic necessity.

NYC’s eight commercial districts define where and how businesses operate — from small community shops to high-rise commercial hubs. What do we know about the C1 to C4 districts that reflect the city’s diverse retail ecosystem, from neighborhood groceries to regional shopping destinations?

At NYCCREA, we view The Manhattan Plan as a transformational opportunity. This isn’t just about adding 100,000 homes—it’s about redefining how the city grows, ensuring that Manhattan remains not just a center of commerce, but a livable, inclusive, and sustainable urban hub for the next generation.

Expanding e-commerce trends have pushed this change. The Last-Mile Facility Text Amendment, a proposed zoning update that would require a special permit for new PDFs, means that large distribution centers would need to undergo a thorough public review and approval process before opening—ensuring that new developments are thoughtfully located and designed to minimize traffic, environmental, and community impacts.

As commercial real estate professionals who work across the Bronx, we see firsthand how thoughtful planning can transform neighborhoods without losing their soul. We want to ensure that future growth along White Plains Road supports affordable housing, local business vitality, and a thriving commercial ecosystem that reflects the people who live here.

From our vantage point as brokers, the OneLIC Plan is a catalyst for sustainable CRE growth. With nearly 15,000 new housing units, a surge in commercial square footage, and tens of thousands of new residents and jobs, LIC is poised to become a balanced live-work-play community.

At NYCCREA, we believe the Green Fast Track is more than a housing policy — it’s an economic policy. We see this policy as a real turning point. By cutting through years of red tape, the city isn’t just helping housing get built faster — it’s also pushing forward climate goals and creating fresh momentum for commercial real estate.