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US: Airbnb has acquired its first office building in New York City for $81.5 million, signalling a long-term commitment to one of its largest employee hubs despite ongoing regulatory disputes over short-term rentals.
The company purchased the six-storey, 42,500-square-foot property at 281 Park Avenue South in Manhattan, which will become Airbnb’s first owned office in the city.
Airbnb said the building will house one of its largest employee hubs outside San Francisco, where the company is headquartered.
Brian Chesky, Airbnb’s co-founder and CEO, said: “This building reflects our long-term commitment to the city and will be home to one of our largest employee hubs outside of San Francisco.
“We’re excited to keep investing in the city and the people who make it extraordinary.”
The acquisition comes almost three years after New York City introduced Local Law 18, one of the most restrictive short-term rental regulations in the US. The legislation requires hosts to register with the city and significantly limits short-term rentals of entire homes, leading to a sharp reduction in Airbnb listings.
Airbnb has consistently opposed the rules, arguing they restrict residents’ ability to earn supplementary income while doing little to address housing affordability.
Despite its flexible working policy, which allows employees to work remotely, Airbnb said many of its more than 600 New York-based employees continue to value in-person collaboration.
According to property data cited by the Wall Street Journal, Airbnb paid around 63% more for the building than the previous owner paid in 2014, bucking wider trends in Manhattan’s office market, where values have declined in recent years.
New York remains one of the most closely watched regulatory markets for the short-term rental sector. Since Local Law 18 came into force in 2023, Airbnb has continued to challenge the legislation publicly while calling for changes to the city’s regulatory framework.
Highlights
- Airbnb has acquired its first New York office building for $81.5 million.
- The six-storey Manhattan property will become one of Airbnb’s largest employee hubs outside San Francisco.
- The purchase comes despite New York City’s strict Local Law 18 short-term rental regulations.
- Airbnb continues to oppose the city’s restrictions, arguing they do not solve housing affordability.
- The company employs more than 600 people in the New York region.
