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
| Aug 20, 2013
Code amendment in Dallas would limit building exterior reflectivity
The Dallas City Council is expected to vote soon on a proposed code amendment that would limit a building’s exterior reflectivity of “visible light” to 15%.
| Aug 16, 2013
Today's workplace design: Is there room for the introvert?
Increasingly, roaming social networks are praised and hierarchical organizations disparaged, as workplaces mimic the freewheeling vibe of the Internet. Research by Susan Cain indicates that the "openness" pendulum may have swung too far.
| Aug 14, 2013
Green Building Report [2013 Giants 300 Report]
Building Design+Construction's rankings of the nation's largest green design and construction firms.
| Aug 13, 2013
DPR's Phoenix office, designed by SmithGroupJJR, affirmed as world's largest ILFI-certified net-zero facility
The new Phoenix Regional Office of DPR Construction, designed by SmithGroupJJR, has been officially certified as a Net Zero Energy Building by the International Living Future Institute (ILFI). It’s the largest building in the world to achieve Net Zero Energy Building Certification through the Institute to date.
| Aug 8, 2013
Stanley Hardware introduces Flexi-Felt for protecting floors
Stanley Hardware offers a solution to the frustrating problem of protecting your floors. The answer is Flexi-Felt®, an innovative product line that eliminates the aggravation of frequently replacing felt pads and leg tips that usually wear down or fall off, causing damage to expensive floors.
| Aug 8, 2013
New green property index could boost REIT investment in more sustainable properties
A project by the National Association of Real Estate Investment Trusts (NAREIT), the FTSE Group, and the U.S. Green Building Council to jointly develop a Green Property Index could help REITs attract some of the growing pool of socially responsible investment money slated for green investments.
| Aug 6, 2013
CoreNet: Office space per worker shrinks to 150 sf
The average amount of space per office worker globally has dropped to 150 square feet or less, from 225 square feet in 2010, according to a recent global survey conducted by CoreNet Global.
| Aug 6, 2013
Australia’s first net zero office building features distinctive pixelated façade
Australia's first carbon neutral office building, featuring a distinctive pixelated façade, recently opened in Melbourne.
| Jul 30, 2013
In support of workplace chatter
As the designers of collaborative work environments, architects and engineers understand how open, transparent spaces can cultivate the casual interaction and knowledge sharing that sparks innovation. Now a new study reveals another potential benefit of open workplaces: social interaction that supports happier employees.
| Jul 29, 2013
2013 Giants 300 Report
The editors of Building Design+Construction magazine present the findings of the annual Giants 300 Report, which ranks the leading firms in the AEC industry.