New York City has more jobs today than any time in our 400-year history. Our economy is strong, and our future is bright. We are the country’s top destination for young talent and the world’s most dynamic companies — from OpenAI to Chobani to Citadel — are choosing New York City as the best place in the world to grow their business.
Despite New York’s bright future, there is one persistent challenge Albany needs to help us solve this legislative session: vacant office space. With roughly 109 million square feet of vacant office space across the five boroughs, New York has more vacant office space than Boston has altogether, both occupied and vacant. These spaces could be the home of startups and scale-ups that create good-paying jobs and strengthen the city’s tax base. Instead, they are sitting quiet and empty.
Right now, in Albany, there is legislation to help address this challenge and keep our economy competitive with other major cities. At the heart of the bill are two tax incentive programs, one that will expire in the next few weeks, and a new one altogether: the “Relocation and Employment Assistance Program” (REAP) and the “Relocation Assistance Credit per Employee” (RACE).
REAP offers tax credits for companies that open new offices above 96th St. in Manhattan or any borough outside Manhattan. First established in 1987, REAP already supports 10,000 jobs in business districts outside of Manhattan — from garment manufacturers in Long Island City to tech jobs in downtown Brooklyn — infusing communities across the city with jobs, energy, and economic activity. REAP is a critical tool for attracting companies to here and keeping companies that are already in the five boroughs.
This includes tech startups like Queen One, which just signed a 10-year lease for its new headquarters in Williamsburg, joining a thriving innovation ecosystem in Brooklyn and contributing to New York City’s status as the applied AI capital of the world. Over the next five years, Queen One will develop technology that brings life and energy to brand websites and communication programs. This will bring 600 tech-centered jobs to the city by 2030 and generate $67 million in research and development investments.
This move is supported by $6 million in tax credits from New York State, and like other companies looking to relocate, Queen One intends on applying for additional incentives through REAP. While their application for REAP will be subject to review, without this option, companies like Queen One may decide to move elsewhere, including to any other state, and take their jobs with them.
Given the size of the challenge, it’s not enough to just retain existing businesses. We need new tools that cover the entire city, including Midtown Manhattan, which is where the RACE program comes in.
RACE is a three-year, citywide pilot program designed to attract new businesses to anywhere in New York City. In Manhattan, companies will be incentivized only if they lease space in an underperforming building. I believe the RACE program will bring an additional 3,000 jobs to New York. RACE is projected to generate $385 million in tax revenue over its 10-year life — a 2.6 times return on investment.
These programs are part of Mayor Adams’ “Race for Space,” an initiative launched in January and designed to address office vacancy and stimulate economic growth. Through this program, the city is already transforming aging Manhattan office buildings into brighter, more modern workspaces and attracting high-growth, international companies in the life sciences, green economy, and tech sectors to the city.
We are taking specific, targeted actions to grow the economy and confront the office vacancy challenge, but New York City can’t solve this problem alone. The Legislature must do its part, too, which is why I traveled to Albany to advocate for these programs and call on my colleagues to pass this bill this session.
New York City’s soaring office towers define so much of our city. But these buildings aren’t just concrete and steel; they’re economic ecosystems, powering entire neighborhoods with bustling streets and small businesses.
These incentive programs are exactly what New York City needs to reactivate these spaces and attract new jobs. They are what we need to build on the record job growth we have already seen over the last three years and keep New York competitive with other cities across the country. Let’s put in place the tools that we need to maintain our position as the greatest city in the world. Let’s pass REAP and RACE into law this session.
Carrión is New York City’s deputy mayor for housing, economic development, and workforce.
