T
he stigma surrounding "office" properties in commercial real estate is beginning to lift, and experts predict increased deal-making activity in New York City next year. This shift in perception may signal a rebound for the office market, which has been struggling with high vacancies and distressed sales.

    Several recent deals suggest that owners are already warming up to office assets. In November, several properties traded hands in Manhattan, including 799 Broadway, 1370 Broadway, and One Vanderbilt. The Durst Organization also put 675 Third Avenue on the market for $100 million.

    Industry leaders like Ben Brown of Brookfield Asset Management and Oliver Carr of Carr Properties are optimistic about the office market's prospects. They see opportunities to acquire quality assets at discounted prices or repurpose older buildings for other uses.

    A survey by Commercial Observer found that many owners are planning to increase their investment in office properties next year, citing potential for a rebound and distressed sales as a buying opportunity. Craig Deitelzweig of Marx Realty views 2025 as a "once-in-a-generation" chance to acquire office assets at discounted prices.

    Some owners are also eyeing office-to-residential conversions, which could become more feasible with anticipated zoning changes next year. Larry Silverstein's company has already successfully converted the former Goldman Sachs headquarters into residential units, and others like Jeff Gural of GFP Real Estate plan to follow suit.

    However, not all owners are convinced that now is the right time to invest in office properties. John Catsimatidis of Red Apple Group prefers to focus on residential properties, citing uncertainty about demand for office space.