KPMG Survey: New York City Business Leaders Set to Increase Hiring, Expand Real Estate Footprint and Make Deals

NEW YORK, Feb. 18 – New York City business leaders are optimistic about the growth prospects of their companies and plan to increase hiring, expand their commercial real estate footprint and pursue deal making, according to a new survey released today by KPMG LLP, the U.S. audit, tax, and advisory firm.

The KPMG 2025 Perspectives: Local Insights from New York report found that the majority of business leaders surveyed are confident in the growth prospects for their company (90%) over the next year. In addition, 77% expect to increase hiring this year, and 68% expect to increase their commercial real estate footprint in the next 12-18 months. Deal making is also poised for growth with 75% of New York business leaders planning to make strategic transformation deals in 2025.

“New York City remains the undisputed epicenter of business opportunity,” KPMG New York Office Managing Partner Yesenia Scheker-Izquierdo said. “Our dynamic business ecosystem continues to attract the world's best talent and boldest ideas, even as we adapt to new ways of working.”

The KPMG 2025 Perspectives: Local Insights from New York report surveyed 100 business leaders (48% C-suite; all VP-level and above) at companies with annual revenues of more than $50 million on the key challenges and opportunities in driving business growth in the city. Key findings are highlighted below.

New York business leaders are confident in the growth prospects for their companies against a backdrop of challenging economic and market conditions.

“New York business leaders are showing strong confidence in their growth prospects and are particularly optimistic about the city's unique ability to attract top talent and foster new businesses. The city’s diverse environment, coupled with its status as a global financial and innovation hub, provides fertile ground for growth and development,” KPMG New York Office Managing Partner Yesenia Scheker-Izquierdo said.

• New York business leaders are confident in the growth prospects for their company (90%), city (83%) state (79%) and country (83%) over the next year.
• Issues top of mind for their businesses reveal the impact of increased disruption and the challenges of navigating long-term structural change.
  • New York business leaders cite economic and market conditions like interest rates, inflation, and growth (63%) followed by AI and generative AI implementation (50%) as top-of-mind issues for their businesses in 2025.
• 77% of New York business leaders expect to increase hiring in 2025.
• 68% plan to increase their commercial real estate footprint in the next 12-18 months.
• 79% report that if the numerous business tax provisions from the Tax Cuts and Jobs Act (TCJA) were to expire at the end of 2025, the changes would have an impact on their overall organization.
• 87% believe that New York City is well-positioned to attract talent and new businesses, including startups, in the next 12-18 months.

Business leaders in New York eyed strategic, transformational M&A deals – with the overwhelming majority planning to do so in early 2025.

“Coming into the year, business leaders were preparing to jumpstart strategic M&A in New York with the majority of New York business leaders planning to make bold moves this year, signaling a dynamic shift in the market landscape,” KPMG New York Office Managing Partner Yesenia Scheker-Izquierdo said.

• 75% of New York business leaders plan to make strategic transformation deals in 2025 and 22% plan to make bolt-on acquisitions.
• 59% of New York business leaders plan to pursue deal making during the first half of 2025. 26% plan to do so in the second half of this year.
• Minority investments (39%), joint ventures (37%) and divestitures (35%) are also planned for this year.

GenAI is a top investment priority as New York business leaders believe AI will have a significant impact on their organization; they also are increasing their investments in cybersecurity to protect their operations and intellectual property from AI threats.

“New York is at the forefront of innovation, with business leaders making bold investments in GenAI while ramping up cybersecurity measures. This dual strategic focus enables both competitive advantage and resilience amidst unprecedented technological change,” KPMG New York Office Managing Partner Yesenia Scheker-Izquierdor said.

• 83% of New York business leaders say AI will have a significant or moderate impact on their organization today versus 66% a year ago.
• 85% of New York business leaders say generative AI is a top investment priority for their organization despite ongoing economic uncertainty.
• 79% of New York business leaders report the integration of generative AI has made them rethink the skills required for entry-level roles.
• 62% of New York business leaders are concerned about the impact of generative AI on their company culture.
• 81% of New York business leaders are confident that their organization can access suitable cybersecurity talent and solutions to defend against AI threats.
• 87% of New York business leaders say that their organization is increasing investment in cybersecurity to protect their operations and intellectual property from AI threats.

To increase productivity and encourage employee engagement, the majority of business leaders want to bring employees back to the office more frequently.

“New York's business leaders believe that in-person work drives both productivity and engagement. They also see it as a means to foster collaboration and enhance the employee experience,” KPMG New York Office Managing Partner Yesenia Scheker-Izquierdo said.

• The greatest challenges business leaders in New York anticipate in 2025 as it relates to their workforce are employee engagement (49%), recruiting and retaining top talent (38%) and upskilling and reskilling initiatives (36%).
• 54% of New York business leaders say they are trying to bring employees back to the office more frequently.
• Increased productivity is the primary motivation to encourage employees to return to the office, according to 81% of leaders, followed by increased employee engagement and connectivity (63%) and utilization of current office space (20%).
• 76% of leaders are trying to make hybrid work arrangements work more effectively.
• 42% of New York business say they are offering a 32-hour work week due to efficiencies gained by using AI to enhance the employee experience.
• 51% of New York business leaders would consider a 4 day, 32-hour work week (employees work a 32-hour week, Monday - Thursday with Friday off).
• 45% of New York business leaders would consider job sharing for certain roles to avoid potential layoffs at their organization.
• 52% of New York business leaders say that the New York City talent pool is “significantly superior” and remains unmatched compared to other regions in the U.S.

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