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
Building Technology | May 24, 2016
Tech is the new office perk, says a new survey of American workers
But most employees still see their companies falling on the dull side of the cutting edge.
High-rise Construction | May 17, 2016
Foster + Partners-designed towers approved as part of massive neighborhood redevelopment in San Francisco
One of Oceanwide Center’s buildings will be the city’s second tallest.
Architects | May 16, 2016
3 strategies to creating environments that promote workplace engagement
VOA's Pablo Quintana writes that the industry is looking for ways to increase engagement through a mix of spaces suited to employees' desire for both privacy and connection.
Office Buildings | May 9, 2016
Can you make a new building as cool as a warehouse?
CannonDesign's Robert Benson insists that the industry needs to start looking at traditional office spaces differently.
Building Tech | Apr 13, 2016
The Hyperchair gives employees access to their own personal set of climate controls
Not only can the Hyperchair reduce heating and cooling costs and maximize employee comfort, but it can help a company become more environmentally friendly, as well.
Architects | Mar 20, 2016
Ars Gratia Artis: A North Carolina architect emphasizes the value of art in its designs
Turan Duda says clients are receptive, but the art must still be integral to the building’s overall vision.
Office Buildings | Mar 16, 2016
Google releases new plans and renderings of its Mountain View campus
The original canopy design scheme is still in place, but the plans now call for it to be opaque.
Office Buildings | Mar 10, 2016
Expedia unveils design for Seattle waterfront campus
Transparency and outdoor areas will give the complex a Pacific Northwest vibe.
Office Buildings | Mar 9, 2016
CBRE: Workplace wellness on the rise
As insurance premiums and deductibles continue to rise, both employees and employers are evaluating options to improve their wellbeing, writes CBRE Healthcare Managing Director Craig Beam.
Market Data | Mar 6, 2016
Real estate execs measure success by how well they manage ‘talent,’ costs, and growth
A new CBRE survey finds more companies leaning toward “smarter” workspaces.
