Class A buildings (like what would be built around Penn) are fully leased and near capacity - look at Hudson Yards, 1 Vanderbilt, etc. Yes, a lot of people work from home but the big leaseholders who are willing to pay for primo office space — banks, corporate law firms, consulting firms, tech… ie the tenants of the aforementioned buildings — are back in the office A LOT.

The exodus to those would also free up older office buildings (with operating windows) in less desirable areas for office space (ie, far from transit hubs) that could then be converted into housing per current proposals