According to the WSJ, the US office market saw a significant increase in leasing activity in the first quarter of this year. Approximately 115 million square feet of space was leased, which represents a 13% increase from the previous quarter and the highest level since before the pandemic in mid-2019.

But then, tariffs for everybody! Now tenants are worried that a recession is coming, inflation is going to rise, and that so too will interest rates. Uncertainty is bad for business.

Here's where things broadly sit as of the beginning of this year:

• The national office vacancy rate was 19.7% at the end of February 2025

• San Francisco had the highest vacancy at 27.8%

• $7 billion worth of office sales were recorded in the first two months of the year and the average price was $177 per square foot

• The cheapest markets are/were in the midwest with Minneapolis-Saint Paul recording the lowest average sale price of $50 per square foot (versus $215 psf a year ago)

• Chicago averaged $67 psf

• The most expensive markets were places like San Diego ($662 psf), Manhattan ($450 psf), San Francisco ($282 psf), Miami ($239 psf), and Los Angeles ($207 psf) — we continue to see a flight to quality

Maybe things will get better later this year, or maybe they won't. It's impossible to know what comes next in this trade war.

Cover photo by Delia Little on

It has now been over 4 weeks since New York City started charging motorists to enter Manhattan so that they pay for a portion of the impact they have on roadways in the city. And the data overwhelmingly supports that travel times have fallen as a result. Transit ridership also appears to be increasing, despite what some critics will tell you, and trains and buses appear to be moving more efficiently as well (via Fast Company):

More commuters are opting for buses to cross Manhattan, and those buses are now traveling more quickly, too. Weekday bus ridership has grown 6%, while weekend ridership is up 21%, compared to January 2024. (Subway ridership has also grown by 7.3% on weekdays and 12% on weekends, part of a larger trend in ridership growth happening since the fall, per the MTA. Anecdotally, some subway riders have said they’ve seen more packed trains on their morning commutes.) Buses entering Manhattan from Queens, Staten Island, and the Bronx are saving up to 10 minutes on their route times, which also makes their arrivals more reliable.

Also noteworthy is that polls suggest that the majority of Manhattan commuters (~66%) now support the congestion relief zone. They are experiencing the benefits and probably doing the mental math that the time they are personally saving is worth at least $9. However, one figure that hasn't changed all that much is that about half of voters across New York State still oppose the congestion charge (though it has dropped by a few percentage points compared to earlier polls).

Paul Krugman speculates (in this recent post) that this negative view is, therefore, coming from people living in upstate NY, which is interesting, because how many of these voters will actually end up paying this charge and/or experiencing its benefits? That's the thing about being asked to spend money that you didn't have to spend before; if you can't clearly see the value in doing so, then you're not going to like the idea.

At the same time, it can be hard to win political battles with facts, figures, and rational arguments alone. Krugman also argues that there are other reasons for why this congestion relief zone is being opposed by many people and why Trump, in particular, wants to kill it:

...maybe the biggest reason for Trump’s desire to kill the congestion charge is a phenomenon I identified the last time I wrote about this: the rage some Americans obviously feel at any suggestion that people should change their behavior for the common good. What we’re seeing with regard to the congestion charge is that some Americans feel that rage even when they themselves aren’t being asked to make changes.

As I have said before, this is an important policy to follow because its success, or failure, will naturally set a precedent for the rest of North America. If transit-rich NYC can't make a congestion relief zone work, then who can? However, my optimistic view continues to be that it will ultimately stick. And already we are seeing positive sentiment from the people who it directly affects/benefits.

According to the WSJ, the US office market saw a significant increase in leasing activity in the first quarter of this year. Approximately 115 million square feet of space was leased, which represents a 13% increase from the previous quarter and the highest level since before the pandemic in mid-2019.

But then, tariffs for everybody! Now tenants are worried that a recession is coming, inflation is going to rise, and that so too will interest rates. Uncertainty is bad for business.

Here's where things broadly sit as of the beginning of this year:

• The national office vacancy rate was 19.7% at the end of February 2025

• San Francisco had the highest vacancy at 27.8%

• $7 billion worth of office sales were recorded in the first two months of the year and the average price was $177 per square foot

• The cheapest markets are/were in the midwest with Minneapolis-Saint Paul recording the lowest average sale price of $50 per square foot (versus $215 psf a year ago)

• Chicago averaged $67 psf

• The most expensive markets were places like San Diego ($662 psf), Manhattan ($450 psf), San Francisco ($282 psf), Miami ($239 psf), and Los Angeles ($207 psf) — we continue to see a flight to quality

Maybe things will get better later this year, or maybe they won't. It's impossible to know what comes next in this trade war.

Cover photo by Delia Little on

It has now been over 4 weeks since New York City started charging motorists to enter Manhattan so that they pay for a portion of the impact they have on roadways in the city. And the data overwhelmingly supports that travel times have fallen as a result. Transit ridership also appears to be increasing, despite what some critics will tell you, and trains and buses appear to be moving more efficiently as well (via Fast Company):

More commuters are opting for buses to cross Manhattan, and those buses are now traveling more quickly, too. Weekday bus ridership has grown 6%, while weekend ridership is up 21%, compared to January 2024. (Subway ridership has also grown by 7.3% on weekdays and 12% on weekends, part of a larger trend in ridership growth happening since the fall, per the MTA. Anecdotally, some subway riders have said they’ve seen more packed trains on their morning commutes.) Buses entering Manhattan from Queens, Staten Island, and the Bronx are saving up to 10 minutes on their route times, which also makes their arrivals more reliable.

Also noteworthy is that polls suggest that the majority of Manhattan commuters (~66%) now support the congestion relief zone. They are experiencing the benefits and probably doing the mental math that the time they are personally saving is worth at least $9. However, one figure that hasn't changed all that much is that about half of voters across New York State still oppose the congestion charge (though it has dropped by a few percentage points compared to earlier polls).

Paul Krugman speculates (in this recent post) that this negative view is, therefore, coming from people living in upstate NY, which is interesting, because how many of these voters will actually end up paying this charge and/or experiencing its benefits? That's the thing about being asked to spend money that you didn't have to spend before; if you can't clearly see the value in doing so, then you're not going to like the idea.

At the same time, it can be hard to win political battles with facts, figures, and rational arguments alone. Krugman also argues that there are other reasons for why this congestion relief zone is being opposed by many people and why Trump, in particular, wants to kill it:

...maybe the biggest reason for Trump’s desire to kill the congestion charge is a phenomenon I identified the last time I wrote about this: the rage some Americans obviously feel at any suggestion that people should change their behavior for the common good. What we’re seeing with regard to the congestion charge is that some Americans feel that rage even when they themselves aren’t being asked to make changes.

As I have said before, this is an important policy to follow because its success, or failure, will naturally set a precedent for the rest of North America. If transit-rich NYC can't make a congestion relief zone work, then who can? However, my optimistic view continues to be that it will ultimately stick. And already we are seeing positive sentiment from the people who it directly affects/benefits.