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Manhattan office tower values plummet below COVID-era slump amid fears AI will wreak a white-collar bloodbath

Manhattan office landlords are trading at implied values below their June 2020 levels, signaling renewed caution.
AI-related disruption is cited by Evercore as a legitimate risk to long-term office demand.
Some Manhattan towers remain valued below pandemic-era numbers as concerns about AI press the market.
The market notes a broader office recovery but warns fundamentals remain weak for some properties.
The New York Times Building had its appraised value cut by about 40%, signaling sector uncertainty.
February leasing slowed and availability rose for the first time in two years, reflecting market strain.
Aging Manhattan towers are being repurposed into housing amid remote-work trends.
25 Water Street is cited as the largest office-to-residential conversion in the U.S., illustrating the trend.
Analysts expect AI concerns to influence investor sentiment even as subway ridership recovers.
Evercore ISI's Steve Sakwa comments on a potential prolonged impairment in cash flows for high-quality assets.

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