NYC Launches Tax Incentive Program for Aging Commercial Office Space
To help turn around high vacancies in Manhattan’s aging office buildings that are at least 250,000 square feet and located south of 59th Street (excludes the Hudson Yards Financing Area and Penn Station Area GPP), the New York City Economic Development Corporation (NYCEDC) and the New York Industrial Development Agency (NYCIDA) have launched the Manhattan Commercial Revitalization Program (M-Core). Manhattan “generates 58.5 percent of the citywide office and retail property tax revenues, and 45 percent of all jobs in NYC. However due to ongoing remote and hybrid work schedules and rising interest rates, some of the borough’s older office buildings have become particularly challenged with high vacancy rates. According to the press release by the NYCEDC, the tax incentive program was created to provide financial assistance by offering real property tax abatement and stabilization, partial mortgage recording tax exemption, and sales tax exemption for “transformative renovations” of eligible office buildings.