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
Office Buildings | May 14, 2019
Sail on, Royal Caribbean: HOK-designed headquarters celebrates cruise ship industry
The building’s design is inspired by the design of its fleet of cruise ships—with flowing lines.
Mixed-Use | May 2, 2019
A series of green bridges will connect these two towers in Shenzhen, China
Steven Holl Architects designed the project.
Office Buildings | May 2, 2019
HOK’s latest study takes a new look at tech workplaces
The report provides insight into the relative importance of such things as amenities and occupant health for recruiting and retaining workers.
Office Buildings | Apr 25, 2019
Study: Half of corporate and government offices offer wellness programs
Nearly 30% of worksites offer programs for physical activity and fitness, according to the CDC.
Office Buildings | Apr 8, 2019
It’s time for office amenities to get to work
Amenities with the greatest impact on effectiveness and experience are those that directly support the work needs of individual employees and their teams.
Office Buildings | Apr 8, 2019
Denver office building features 13,000 sf green roof
Dynia Architects designed the building.
Office Buildings | Apr 5, 2019
2019 trends in the workplace
From retention and career advancement to the ethics of inclusion and diversity, these five trends will play a major role this year in design, strategic planning and workplace development.
Industrial Facilities | Mar 10, 2019
The burgeoning Port San Antonio lays out growth plans
Expansions would accommodate cybersecurity, aerospace, and defense tenants, and help commercialize technologies.
Office Buildings | Mar 6, 2019
How to leverage design and culture’s two-way relationship for better workplaces
The relationship between workplace design and company culture isn’t all that different from a tango.
Office Buildings | Feb 15, 2019
A healthier perspective: Office developers bet on wellness amenities to attract top-notch tenants
Owners and developers are driving demand for wellness features and practices—active stairways, biophilia, enhanced air quality, etc.—as one more way draw tenants.