Rightsizing vs. reshoring: How NYC firms are redesigning footprints
The shift to hybrid work has permanently altered the landscape of New York City's commercial real estate. As companies adapt to new work models where employees split time between the office and home, the traditional five-day-a-week commute is becoming a relic of the past. This has led to a significant re-evaluation of office space needs, with many firms choosing to either rightsize their existing footprints or, in some cases, reshore operations.
This transition isn't just about saving on rent; it's a strategic move to create more efficient, collaborative, and appealing work environments. However, redesigning an office footprint is a complex undertaking that requires meticulous planning and execution. For companies navigating this change, partnering with expert NYC office movers is essential for a smooth and successful transition. Their expertise in commercial relocations ensures that every aspect of the move, from logistics to storage, is handled with precision and care.
Understanding rightsizing and reshoring
As businesses adapt, two key terms have emerged: rightsizing and reshoring. Though sometimes used interchangeably, they represent distinct strategies.
What is rightsizing?
Rightsizing is the process of adjusting a company's office space to better match the needs of a hybrid workforce. With fewer employees in the office on any given day, many businesses find they no longer require large, sprawling floor plans. Instead, they are moving to smaller, more flexible spaces that foster collaboration and are equipped with the technology needed for a hybrid environment. The goal is to eliminate underutilized space and reduce overhead costs while creating a more functional workplace.
What is reshoring?
Reshoring involves moving business operations that were previously outsourced overseas back to the home country. While less common in the direct context of NYC office space, it's a related trend driven by a desire for more resilient supply chains, better quality control, and sometimes, government incentives. A company reshoring its manufacturing or call center might also need to secure new or different types of office space in NYC to support these repatriated functions.
NYC office space trends
The New York City office market is currently a dynamic and somewhat contradictory environment. While headlines have focused on record-high vacancy rates, a closer look reveals a more nuanced picture, especially in areas like Lower Manhattan.
A recent JLL report highlighted a surge in leasing activity, which has more than doubled year-over-year in Lower Manhattan. This is happening even as the overall office inventory shrinks due to a wave of office-to-residential conversions. According to the report, over 5.5 million square feet of office space has been converted since 2020, with another 5.8 million square feet identified as likely candidates. This trend is accelerated by New York's 467m tax incentive program, which encourages developers to convert older office buildings into much-needed housing.
The result is a "flight to quality," where tenants displaced by these conversions are competing for the remaining Class A office space, often choosing to stay within the same neighborhood rather than relocating to other parts of the city.
Why nyc firms are redesigning their footprints
Companies are rethinking their office needs for several strategic reasons. The decision to rightsize or reshore is often driven by a combination of financial, operational, and cultural factors.
Reasons for rightsizing
Cost Savings: Reducing the office footprint directly translates to lower rent, utilities, and maintenance costs.
Better Space Utilization: A smaller office allows for a more intentional design that prioritizes collaborative zones, meeting rooms, and quiet spaces over rows of empty desks.
Adapting to Remote Work: With permanent hybrid or remote policies in place, a large central office is no longer a necessity for many firms.
Employee Well-being: Modern, well-designed offices can be a key tool for attracting and retaining talent, offering amenities and a collaborative atmosphere that employees can't get at home.
Reasons for reshoring
Supply Chain Resilience: The pandemic exposed the vulnerabilities of global supply chains, prompting companies to bring critical operations closer to home.
Government Incentives: Federal and state programs may offer financial benefits for companies that create jobs domestically.
Quality Control: Having operations in the same country allows for easier oversight and management, ensuring higher standards.
Case studies: NYC companies in action
The trend of rightsizing is visible across Manhattan. As reported by TheRealDeal, several firms displaced by building conversions in Lower Manhattan have chosen to relocate nearby rather than leave the area.
Engineering firm Arup and law firm Lewis Brisbois Bisgaard & Smith, for example, were both tenants at 77 Water Street. When the building was slated for conversion into 650 apartments, both companies moved to 140 Broadway. Despite the higher rents at their new location, $65–$79 per square foot compared to $46–$56 at their previous address, the move represented a strategic upgrade to a more stable, higher-quality Class A building less likely to face conversion itself. These moves demonstrate that even when downsizing, companies are prioritizing quality and stability in their new office spaces.
Navigating the transition with Empire Movers and Storage NYC
Redesigning an office footprint is a significant undertaking. For companies in New York, the logistical complexities of moving are best handled by specialists. Empire Movers and Storage NYC has established itself as a leader among NYC office movers, offering comprehensive solutions tailored to the unique challenges of commercial relocations.
Their expertise ensures a seamless process from start to finish. They provide detailed planning, professional packing, secure transportation, and efficient setup at the new location. By managing the move, Empire Movers and Storage NYC allows businesses to focus on their core operations without disruption. For companies' rightsizing, their storage solutions are also invaluable for housing excess furniture and equipment during the transition.
Challenges and solutions
Rightsizing or reshoring comes with its own set of challenges, but with proper planning, they can be effectively managed.
Logistics: Coordinating a move in a dense urban environment like NYC requires expert knowledge. Challenges include navigating building regulations, securing parking permits, and managing tight schedules.
Employee Morale: A move can be unsettling for employees. Clear communication and involving them in the process can help maintain morale and generate excitement for the new space.
IT Infrastructure: Migrating servers, networks, and other critical IT equipment requires specialized handling to avoid data loss and minimize downtime.
Empire Movers and Storage NYC addresses these challenges head-on. Their team is experienced in handling complex urban logistics. They offer specialized office moving services in New York, including IT equipment migration, to ensure everything is moved safely and securely. Their customer-centric approach means they work closely with clients to create a moving plan that minimizes disruption and supports a positive employee experience.
Adapt and thrive in the new era of work
The office is far from dead; it is simply evolving. The future of office space in NYC will be defined by flexibility, technology, and a focus on creating a superior employee experience. As companies continue to rightsize and adapt to hybrid work, the demand for high-quality, well-located office space will remain strong.
For any organization planning a move, the key to success is partnering with a trusted expert. Empire Movers and Storage NYC provides the top-notch NYC office movers and support needed to navigate this new landscape confidently. Their commitment to reliability and customer satisfaction ensures that your company's transition will be smooth, efficient, and successful.