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
Architects | Mar 9, 2020
New York's façade inspection program gets an overhaul following a death from falling terra cotta
January 14, 2020, kicked off big changes to the NYC Local Law 11 Façade Inspection and Safety Program (FISP) for Cycle 9.
Office Buildings | Mar 5, 2020
SOM design’s Disney’s New York HQ
The HQ is being built in the Hudson Square neighborhood.
Office Buildings | Mar 3, 2020
REI’s new headquarters is all about the outdoors
NBBJ designed the project.
Adaptive Reuse | Feb 25, 2020
Hastings Architecture creates its new HQ from a former Nashville Public Library building
The building was originally constructed in 1965.
Office Buildings | Feb 13, 2020
CareerBuilder’s Chicago HQ undergoes renovation
Perkins and Will designed the project.
Office Buildings | Feb 11, 2020
Want your organization to be more creative? Embrace these 4 workplace strategies
Creativity is the secret sauce in the success of every business.
Office Buildings | Feb 11, 2020
Forget Class A: The opportunity is with Class B and C office properties
There’s money to be made in rehabbing Class B and Class C office buildings, according to a new ULI report.
Office Buildings | Feb 3, 2020
Balancing the work-life balance
For companies experiencing rapid growth, work-life balance can be a challenge to maintain, yet it remains a vital aspect of a healthy work environment.
Sponsored | HVAC | Feb 3, 2020
Reliable Building Systems Increase Net Operating Income by Retaining Tenants
Tenants increasingly expect a well-crafted property that feels unique, authentic, and comfortable—with technologically advanced systems and spaces that optimize performance and encourage collaboration and engagement. The following guidance will help owners and property managers keep tenants happy.
Office Buildings | Jan 29, 2020
Zaha Hadid Architects to build OPPO’s new Shenzhen HQ
ZHA sees your two connected towers and raises you another two.