The proportion of the U.S. workforce working remotely has dropped considerably since the start of the Covid 19 pandemic, but office vacancy rates continue to rise.
Fewer than 26% of households have someone who worked remotely at least one day a week, down sharply from 39% in early 2021, according to the latest Census Bureau Household Pulse Surveys. Only seven states and Washington, D.C., have a remote-work rate above 33%, down from 31 states and D.C. at the pandemic peak.
In the first quarter of 2023, about 16.1% of office space across the country was vacant, up from 15% in the first quarter of 2022, according to global data and business intelligence platform Statista. Before 2020 when few had heard the word “coronavirus,” the quarterly office vacancy rate was around 12%.
It may seem counterintuitive for vacancy rates to rise as more workers go back to the office, but remote work is here to stay, and employers have changed their outlook on office space. “With a considerable part of the workforce working from home or following a hybrid working model, businesses are cautious when it comes to upscaling or renewing leases,” Statista says.
“The function of the office has evolved from the primary workplace to a space where employees collaborate, exchange ideas, and socialize,” Statista says. “That has shifted occupiers’ attention toward spaces with modern designs that can accommodate the office of the future.”
Related Stories
Adaptive Reuse | Aug 31, 2023
New York City creates team to accelerate office-to-residential conversions
New York City has a new Office Conversion Accelerator Team that provides a single point of contact within city government to help speed adaptive reuse projects. Projects that create 50 or more housing units from office buildings are eligible for this new program.
Office Buildings | Aug 25, 2023
A new white paper explores the pros and cons of office building conversions
Produced by SGA and Colliers, the paper charts considerations for 14 building types.
Government Buildings | Aug 23, 2023
White House wants to ‘aggressively’ get federal workers back to the office
The Biden administration wants to “aggressively” get federal workers back in the office by September or October. “We are returning to in-person work because it is critical to the well-being of our teams and will enable us to deliver better results for the American people,” according to an email by White House Chief of Staff Jeff Zients. The administration will not eliminate remote work entirely, though.
Giants 400 | Aug 22, 2023
Top 115 Architecture Engineering Firms for 2023
Stantec, HDR, Page, HOK, and Arcadis North America top the rankings of the nation's largest architecture engineering (AE) firms for nonresidential building and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Aug 22, 2023
2023 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
A record 552 AEC firms submitted data for BD+C's 2023 Giants 400 Report. The final report includes 137 rankings across 25 building sectors and specialty categories.
Giants 400 | Aug 22, 2023
Top 175 Architecture Firms for 2023
Gensler, HKS, Perkins&Will, Corgan, and Perkins Eastman top the rankings of the nation's largest architecture firms for nonresidential building and multifamily housing work, as reported in Building Design+Construction's 2023 Giants 400 Report.
Affordable Housing | Aug 21, 2023
Essential housing: What’s in a name?
For many in our communities, rising rents and increased demand for housing means they are only one paycheck away from being unhoused. It’s time to stop thinking of affordable housing as a handout and start calling it what it is: Essential Housing.
Adaptive Reuse | Aug 16, 2023
One of New York’s largest office-to-residential conversions kicks off soon
One of New York City’s largest office-to-residential conversions will soon be underway in lower Manhattan. 55 Broad Street, which served as the headquarters for Goldman Sachs from 1967 until 1983, will be reborn as a residence with 571 market rate apartments. The 30-story building will offer a wealth of amenities including a private club, wellness and fitness activities.
Sustainability | Aug 15, 2023
Carbon management platform offers free carbon emissions assessment for NYC buildings
nZero, developer of a real-time carbon accounting and management platform, is offering free carbon emissions assessments for buildings in New York City. The offer is intended to help building owners prepare for the city’s upcoming Local Law 97 reporting requirements and compliance. This law will soon assess monetary fines for buildings with emissions that are in non-compliance.
Office Buildings | Aug 15, 2023
Amount of office space in U.S. is declining for the first time, says JLL
In what is likely a historic first, the amount of office space in the U.S. is forecast to decline in 2023, according to Jones Lang LaSalle. This would be the first net decline according to data going back to 2000, JLL says, and it’s likely the first decline ever.
