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 31, 2018
EarthCam Headquarters features a 25-foot-tall video portal entrance
Watch a time-lapse of the HQ being built from groundbreaking to grand opening.
| May 30, 2018
Accelerate Live! talk: T3 mass timber office buildings
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), architect and mass timber design expert Steve Cavanaugh tells the story behind the nation’s newest—and largest—mass timber building: T3 in Minneapolis.
| May 24, 2018
Accelerate Live! talk: Security and the built environment: Insights from an embassy designer
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), embassy designer Tom Jacobs explores ways that provide the needed protection while keeping intact the representational and inspirational qualities of a design.
Office Buildings | May 22, 2018
AAA headquarters embodies a road trip atmosphere
HGA designed the space.
Office Buildings | May 22, 2018
Where fun follows function: New study reemphasizes the value of play in the workplace
Perkins Eastman recommends personalization, access and “linkages,” and variety as design criteria.
Office Buildings | Apr 25, 2018
Cardiff is home to the new BBC Cymru Wales headquarters
Foster + Partners designed the building.
Office Buildings | Apr 23, 2018
Activity-based design takes precedence in new office projects
The latest report by Ted Moudis Associates also finds more space being allocated for amenities and wellness.
Office Buildings | Apr 19, 2018
From fitness to bowling alleys: How commercial office buildings are differentiating themselves through amenities
Here are five ways that amenities can help developers and building owners attract and secure tenants by appealing to their inhabitants.
Office Buildings | Mar 21, 2018
Yeti’s new global headquarters evokes the outdoors
Gensler designed the new HQ.
Office Buildings | Mar 19, 2018
A cost guide to office fit-outs provides comparisons for 59 markets
The new JLL report also finds landlords offering more generous tenant improvement allowances.