Business
Will office buildings ever be the same? Empire State offers clues
NEW YORK (Reuters) – The Empire State Building has been a symbol of America’s economic might for almost 90 years. Of late, it’s also become a symbol of its struggle with the coronavirus.
The once jam-packed 102 stories of the 1,454 ft (443m) Art Deco skyscraper sit mostly empty in a city in shock from the country’s worst outbreak of COVID-19. Its spire has been lit up with red-and-white flashes to honor emergency workers, a siren in Midtown Manhattan.
A week into New York’s second phase of post-lockdown re-opening, dozens of the companies with office space in one of the world’s most famous buildings are trying to figure out when, how – even whether – to come back.
The same quandary is being played out across the United States, and the world. Something so normal as working in a big office block has abruptly become almost unimaginable for many.
The June 22 reopening allowed office buildings to invite tenants back, as long as maximum occupancy stayed below 50%. But most companies based in the Empire State Building, which range from tech firms like LinkedIn Corp and luxury watch brand Bulova to nonprofits like the World Monuments Fund, have opted to extend work-from-home arrangements.
Based on a tenant poll, management expected just 15% to 20% of the building’s usual 15,000 worker population to return at the second phase of reopening.
Yet even among those who plan to maintain a presence when the time comes, few expect to ever return to a workplace like the one they knew before coronavirus, according to Reuters interviews with several people who work or run companies there.
Global Brands Group (0787.HK), which licenses the likes of Calvin Klein, signed a 15-year lease for six floors of office space in 2011 but has already told employees based in New York that they will never be required to come back to the office.
The allure of working in “unbelievable corporate headquarters” has been dulled by the pandemic, Rick Darling, chief executive of the apparel and marketing firm, told Reuters.
“I think they become less important,” he said. “If your people are dispersed, really the performance of your company becomes the prestige point.”
The company has not yet made any decisions on office space and will need showrooms for fashion launches, Darling said.
‘Go back to way it was’
Such shifting attitudes could spell trouble for Empire State Realty Trust Inc (ESRT.N), which owns and manages the building, as well as for other major commercial real-estate companies across the city and beyond.
New York City office property values have likely fallen 10% during the pandemic, said Daniel Ismail, lead analyst at real-estate research firm Green Street Advisors.
Empire State Realty shares are down nearly 53% since the end of 2019, versus a 25% fall this year in the FTSE Nareit Equity Office .FTFN47U index which tracks office real estate investment trusts (REITs).
Ismail pointed to pressuring factors for the company, including the COVID-19 shutdown of the Empire State Building’s observatory – a tourism magnet that last year generated more than a fifth of revenue for the group, which also has other office and retail spaces across the city.
Even so, CEO Anthony Malkin remains optimistic.
His family has been involved with the Empire State Building since the 1960s, and he is convinced its status as a famed piece of the New York skyline will outlast the temporary, if painful, impact of the coronavirus.
“Since COVID, we’ve only had people sign leases, we haven’t had anyone move out,” Malkin said in an interview, noting that Starbucks Corp (SBUX.O) signed a lease for a three-level store on March 15. “In a post-COVID treatment, vaccine, herd-immunity world, everything’s going to go back to the way it was.”
Empire State Realty drew down $550 million from a revolving credit facility in the first quarter to make sure it would have cash on hand if tenants fell behind on payments, but so far it has received the bulk of dues.
April rent collection dropped to 73% initially but rebounded to 83% by June 1, according to an investor presentation. The company offered deferral to a small portion of tenants which helped keep overall occupancy stable at around 96%.
‘You’re real, happening’
Some tenants say they have no intention of leaving.
For instance, Shutterstock Inc (SSTK.N), which signed an 11-year lease in 2013, is following orders from authorities about when and how to return, said Heidi Garfield, the company’s general counsel and interim chief human resources officer.
The creative content platform has 85,000 square feet, with an open-plan layout that includes a large café, a library, a terrace, an exercise studio and lounge areas. Before coronavirus, employees’ main gripes were when taps for cold-brew coffee or kombucha went down, Garfield said.
Officials from smaller non-profit tenants like the Human Rights Foundation and Human Rights Watch said the iconic building lends credibility with donors and potential partners, regardless of where staff work.
“Being in the Empire State Building was a solid component of our reputation,” said Human Rights Foundation President Thor Halvorssen. “People immediately assume that you’re solvent and you’re real and you’re happening.”
But other tenants are less confident. Unsure what the future of work might look like, they questioned whether it makes sense to spend big dollars for office space when remote operations have been working just fine.
It cost an average of $65.19 per square foot to lease space in one of Empire State Realty’s Manhattan buildings pre-COVID-19, according to the company, compared with an average of $81.64 across Manhattan as of late May, according to U.S. real estate firm CBRE Group Inc (CBRE.N).
Pricing has not changed much during the pandemic because of few new listings, said CBRE Director Nicole LaRusso, adding the reopening process might see “more revisiting on pricing.”
No mask? You can’t come in
Visitors to the Empire State Building are immediately confronted with the new reality.
Anyone entering the building must wear a mask and carry their own hand sanitizer, Malkin said.
Management closed non-essential entrances and retrofitted retail space downstairs as temperature-check and sanitization stations, tenants said. The elevator lobby has stickers on the floor that people waiting must stand on to ensure social distancing.
Similar stickers line the sidewalks outside the main entrance, in preparation for the re-opening of its observatory next month. The attraction, which allows visitors to take pictures on top of the building, raked in over $125 million in revenue for the company last year.
Some companies are reevaluating leases.
This month, for example, beauty-products company Coty Inc (COTY.N) signed over 50,000 square feet of its Empire State Building space to LinkedIn, owned by Microsoft Corp (MSFT.O).
Travel site Expedia Group Inc (EXPE.O), which occupies 9,000 square feet on the 72nd floor, said it had deferred “several real estate capital projects” to preserve liquidity.
Representatives for Coty, Expedia and LinkedIn did not respond to multiple requests for comment.
Even once the pandemic is past, the office market is likely to remain irrevocably changed, according to analyst Ismail at Green Street Advisors.
“Major companies have found an increased level of comfort with people working from home, which I think will likely accelerate in the future.”
Reporting and photo: Reuters
Hotelier Maldives has announced Bestbuy Maldives (BBM) as the Title Partner of Hotelier Maldives Awards 2026 under a multi-year agreement, reaffirming one of the longest-standing partnerships behind the publication’s flagship hospitality recognition platform.
The 2026 edition marks the third consecutive year that BBM has served as Title Partner of Hotelier Maldives Awards, having supported the event in the same capacity since its launch in 2024. BBM has also backed Hotelier Maldives’ second flagship event, GM Forum, every year since 2023, with 2026 set to mark its fourth year as a Silver Partner of the forum.
The continued partnership reflects a shared commitment to recognising the people behind the Maldives’ tourism industry while supporting platforms that encourage industry dialogue, leadership and professional development.
Hotelier Maldives Awards 2026 entered its public voting phase on 15 March 2026, with voting set to remain open for one month. Winners will be announced at the gala ceremony on 26 April 2026 at NIVA Kurumba Maldives.
Commenting on the partnership, Ali Naafiz, Editor of Hotelier Maldives, said: “BBM has been a valued partner of Hotelier Maldives Awards since the very beginning, and we are pleased to formalise this continued support through a multi-year agreement. Their decision to return as Title Partner for a third consecutive year reflects not only the strength of our relationship, but also a shared belief in the importance of recognising the people who drive excellence across the Maldives’ hospitality industry.
“BBM has also consistently supported GM Forum over the years, making them one of the most committed partners across our event platforms. We are proud to continue working together as we strengthen both Hotelier Maldives Awards and GM Forum as annual fixtures for the industry.”
AVS Subrahmanyam, Chief Operating Officer of BBM, said: “At BBM, we have always believed that a strong hospitality industry is built by strong people, and Hotelier Maldives Awards provides an important national platform to recognise the professionals whose work often takes place behind the scenes. We are pleased to continue as Title Partner of the awards under this multi-year agreement, while also extending our support to GM Forum for a fourth consecutive year.
“As a company that has grown alongside the Maldives’ hospitality sector, we value opportunities that celebrate talent, encourage professional pride and contribute to the long-term development of the industry. Our continued partnership with Hotelier Maldives reflects that commitment.”
Bestbuy Maldives is one of the country’s leading importers and distributors, serving the hospitality, HORECA and retail sectors with a broad portfolio of international brands. The company positions itself as a partner to the Maldivian hospitality industry, supplying products from around the world across key business verticals including resorts, foodservice and retail.
Hotelier Maldives Awards continues to recognise the contributions of resort-based hospitality professionals across the Maldives, highlighting both individual excellence and team performance. The awards programme remains the country’s only dedicated recognition platform focused on professionals working in resort operations. The current public voting round allows industry stakeholders, colleagues, guests and the wider public to take part in selecting this year’s winners.
The growing list of confirmed partners for Hotelier Maldives Awards 2026 includes Bestbuy Maldives (BBM) as Title Partner, Dhiraagu as Platinum Partner, Storm Events as Organising Partner, NIVA, Kurumba Maldives as Host Partner, Souvenir Marine as Transport Partner, ALIA as Associate Sponsor, and Lightsout Studios as Associate Partner. More partners and sponsors will be announced soon.
Dusit International, one of Thailand’s leading hotel and property development companies, has announced the opening of Feydhoo Hall, a landmark event venue at dusitD2 Feydhoo Maldives, redefining the possibilities for meetings, celebrations, and destination events in the Maldives.
Designed to bring scale, flexibility, and creativity to island gatherings, Feydhoo Hall represents a bold step forward in positioning the Maldives as a dynamic destination for conferences, weddings, and large-scale social occasions.
Feydhoo Hall offers a versatile event complex designed to accommodate a wide range of gatherings, from corporate meetings and conferences to weddings and social celebrations.
At its core is the 390 sqm Main Hall, capable of hosting:
- Up to 300 guests in theatre-style setup
- Up to 240 guests for dining and banquet-style events
- Up to 200 guests for cocktail-style receptions
- Up to 144 guests in cluster-round configuration
Enhancing the flexibility of the venue are additional dedicated spaces, including:
- A 110 sqm Veranda Terrace, ideal for welcome receptions, breakout sessions, and pre-event gatherings, accommodating up to 100 guests for cocktail-style events.
- A spacious 1,000 sqm Lawn Space, perfect for large-scale outdoor celebrations, destination weddings, and open-air events, accommodating up to 400 guests for cocktail receptions and up to 350 guests for dining setups.
- The 55 sqm Ekugai Meeting Room, designed for smaller meetings and executive sessions, accommodating up to 30 guests in theatre or dining setup and 24 guests in cluster-round format.
Together, these integrated spaces create a seamless indoor-outdoor event experience, allowing planners to design dynamic and personalised event journeys.
True to the dusitD2 brand’s lifestyle-driven philosophy, Feydhoo Hall introduces a fresh approach to meetings and events — where productivity meets creativity in an inspiring island setting.
The venue offers flexible meeting formats designed to suit different event needs, including:
- Half-Day Meeting Package (4 hours) — ideal for focused sessions, executive meetings, and creative workshops.
- Full-Day Meeting Package (8 hours) — designed for immersive conferences, extended workshops, and large-scale corporate gatherings.
These thoughtfully structured packages provide planners with the flexibility to create impactful and seamless experiences, whether hosting intimate strategy sessions or dynamic full-day events.
Located just seven minutes by speedboat from Velana International Airport, dusitD2 Feydhoo Maldives combines accessibility with vibrant lifestyle energy, offering event planners and guests a rare balance between convenience and tropical escape.
With the introduction of Feydhoo Hall, the resort strengthens its position as a versatile destination — not only for leisure travellers but also for international conferences, creative retreats, luxury weddings, and large-scale social celebrations seeking something refreshingly different in the Maldives.
Bestbuy Maldives (BBM) opened a new wholesale store in Hulhumalé Phase 2 on Monday.
The outlet is located on the ground floor of Lot 20286, Nirolhu Magu, and is intended to improve access to BBM’s imported goods for residents of Hulhumalé Phase 2 and for businesses operating in the area.
According to the company, the opening forms part of its plan to expand services closer to customers in line with population growth in Hulhumalé.
With the opening of the new store, BBM’s full range of imported and distributed products will be available at the Hulhumalé Phase 2 location. These include consumer goods from international brands such as Lifebuoy, Vaseline and Unilever.
The store will also stock wholesale food products from brands including Daily, Cavin’s and Redman.
BBM has supplied goods to resorts, hotels and retail outlets across the Maldives for several years.
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