Hybrid Work’s Hidden Costs

Everyone knows that many office owners are taking a financial beating from the persistence of hybrid work schedules. Other businesses are too — to the tune of billions of dollars total per year, according to a new analysis. Everyone also knows that South Florida has drawn renewed interest since the pandemic as a place to live and work. That trend drives a lot of Commercial Observer’s first-ever Power South Florida list. Check it out.

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— Tom Acitelli, Co-Deputy Editor

Hybrid Work Costing NYC Businesses More Than $12B a Year, Report Finds

Manhattan office employees are spending a whopping $12.4 billion less a year thanks to their hybrid work schedules, according to a Bloomberg analysis of Stanford University data. The average Manhattan office staffer is spending $4,661 less per year on food and entertainment near their cubicles than they did in 2019, according to data from a monthly Stanford survey of U.S. workers. The study arrived at that figure by calculating how much an employee spent in or near the office during an average week in 2019 and then multiplying that figure by 30 percent, the average amount of time New York office workers worked remotely in 2022. With 2.7 million office workers in Manhattan, individual drops in shopping amounted to billions in losses per year, according to Bloomberg, which calculated the annual cost by multiplying the average person’s decline in spending by the U.S. Census Bureau's 2019 estimate of the number of Manhattan commuters.

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Introducing Commercial Observer’s First-Ever Power South Florida List

“Florida right now is the best market in the United States.” If these were the words of a local Florida housing developer, we might take it with a grain of salt. Every real estate mogul does their best to pump up their chosen market. Depending on the speaker, it could be safely relegated to the hyperbole pile. But the author of these words is no mere local developer. Local, yes, in the sense that he grew up in Florida, and local in the sense that he lives in the state now. But this is how Stephen M. Ross, the founder and chairman of Related Companies, described the Sunshine State. And one sees the logic behind this statement as one peruses the names on Commercial Observer’s inaugural Power South Florida list.

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