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 | Apr 28, 2021
The Salvation Army’s National Headquarters renovation completes
HGA designed the project.
Steel Buildings | Apr 17, 2021
Speed Core wall system is used for the second time in office building in San Jose
The construction method is expected to knock off three months from the project’s schedule.
Office Buildings | Apr 15, 2021
JetBrains St. Petersburg campus to include large, vertically stepped indoor atrium
UNStudio is designing the project.
Office Buildings | Apr 12, 2021
A Fort Myers, Fla., developer finds growth in an office sector that, post COVID, might be catching its second wind
Seagate Development Group has several office projects near completion.
Office Buildings | Apr 7, 2021
Thyssenkrupp’s new HQ will include the tallest elevator test tower in the Western Hemisphere
The facility began construction in August of 2019.
Office Buildings | Apr 5, 2021
FXCollaborative selected to create new lobby, amenity space for 3 Times Square
FXCollaborative designed the original building in 2001.
Office Buildings | Apr 5, 2021
Innovation One completes at University Research Park in Madison, Wis.
Valerio Dewalt Train designed the project.
Office Buildings | Mar 30, 2021
WELL Institute certifies a gigantic office complex with its highest health and safety rating
Poland’s Olivia Business Center one of the first to install ion air purification devices.
Office Buildings | Mar 26, 2021
Finding success for downtown office space after COVID-19
Using the right planning tools can spur new uses for Class B and C commercial real estate.
Office Buildings | Mar 24, 2021
JEA Headquarters tops out in Jacksonville
The building has recently topped out.
