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 | Oct 26, 2016
Zaha Hadid Architects’ Dominion Office Building employs a fantastical design for its atrium
The office is located in Moscow’s southern district.
High-rise Construction | Oct 5, 2016
Plans for Hudson Yards skyscraper from Bjarke Ingels have officially been filed
The 65-story tower will be primarily office space and has an estimated development cost of $3.2 billion
Office Buildings | Sep 30, 2016
How to choose the right amenities for your office
No matter how lavish the amenities, they’ll prove ineffective in making any kind of positive impact if they don’t align to a company’s culture and the characteristics that make an organization unique, write Gensler’s Lena Kitson and Kimberly Foster.
High-rise Construction | Sep 23, 2016
A massive redevelopment in Tokyo reunites developer and architect
Mitsui Fudosan and SOM join forces to create OH-1, a mixed-use complex with a prominent public square.
Office Buildings | Sep 22, 2016
‘Floating’ triangular glass building from Foster + Partners breaks ground in Copenhagen
The glass building provides the illusion of floating above a stone plinth.
Office Buildings | Sep 20, 2016
Sterling Bay proposes SOM-designed office tower near Chicago’s newly opened Transit Center at Union Station
The building is one of several projects that are filling this developer’s plate in this city.
Office Buildings | Sep 8, 2016
Taipei’s Lè Architecture, designed by Aedas, is almost complete
The 18-story building is designed to resemble a moss-covered river pebble in Taipei’s Nangang District.
Office Buildings | Sep 2, 2016
Eight-story digital installation added as part of ESI Design’s renovation of Denver’s Wells Fargo Center
The crown jewel of a three-year makeover project, the LED columns bring the building’s lobby to life.
Codes and Standards | Sep 1, 2016
Overuse of air conditioning hurts office productivity
A study found temperatures in the low 70s reduce worker performance.
| Aug 12, 2016
OFFICE GIANTS: Technology is giving office workers the chance to play musical chairs
Technology is redefining how offices function and is particularly salient in the growing trend of "hoteling" and "hot seating" or "free addressing."
