If "Shrinking Need for Office Space Could Crush Landlords," then (I speculate) new work-from-home plan--and platform--nudged by embattled governor?

For the nth time, another warning, on today's New York Times front page, After Pandemic, Shrinking Need for Office Space Could Crush Landlords:

Businesses have discovered during the pandemic that they can function with nearly all of their workers out of the office, an arrangement many intend to continue in some form. That could wallop the big property companies that build and own office buildings — and lead to a sharp pullback in construction, steep drops in office rents, fewer people frequenting restaurants and stores, and potentially perilous declines in the tax revenue of city governments and school districts.

In only a year, the market value of office towers in Manhattan, home to the country’s two largest central business districts, has plummeted 25 percent, according to city projections released on Wednesday, contributing to an estimated $1 billion drop-off in property tax revenue.

Notable, the city's largest private employer, JPMorgan Chase, expects office "seats"--not private space--for only 60 of 100 employees, and the return to office trend has gone far more slowly than predicted in past months.

And Jonathan Litt of the investment fund Land & Buildings--which made a profitable bet on Forest City Realty Trust--suggests "office real estate is going to take it on the chin" for the next few years.

Some Atlantic Yards/Pacific Park speculation

So what does this mean for Atlantic Yards/Pacific Park? Again, it undermines the rationale for a ground-up office tower at Site 5, plans for which have been stalled first by litigation.

What it could mean--and this is purely speculation--is that developers of new residential buildings contemplate additional space for those expected to work from home. 

But expanded residential space means fewer units in the same allotted square footage, raising costs and lowering returns. Something would have to give. 

Could there be money in federal or state budgets to fund such an experiment?

Similarly, might there be government money for the platform planned over two blocks of the Vanderbilt Yard, the platform that was supposed to start last year? 

If so, don't be surprised if savvy developers like Greenland Forest City Partners try to corral it.

And never underestimate the ability of an embattled governor--er, Andrew Cuomo--looking to shore up support by distributing grants for good-news photo ops.