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
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 85 Office Sector Construction Firms
Turner, Structure Tone, and Gilbane top BD+C's ranking of the nation's largest office sector contractors and construction management firms.
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 75 Office Sector Engineering Firms
AECOM, Jacobs, and Burns & McDonnell head BD+C's ranking of the nation's largest office sector engineering and engineering/architecture firms.
Giants 400 | Aug 5, 2015
GIANTS 300 REPORT: Top 135 Office Sector Architecture Firms
Gensler, HOK, and Perkins+Will top BD+C's ranking of the nation's largest office sector architecture and architecture/engineering firms.
Giants 400 | Aug 5, 2015
OFFICE SECTOR GIANTS: Today’s workplace design must appeal to Millennials’ ‘activity-based’ lifestyle
Office market AEC Giants discuss the latest trends workplace design, and the state of the office construction sector.
Office Buildings | Jul 31, 2015
Design unveiled for Apple HQ visitor center
A glass-walled single-story building alongside the main office building in Cupertino, Calif., will be used as a visitor center.
Office Buildings | Jul 29, 2015
Design plans for Fannie Mae’s new HQ revealed
The developer/owner, Carr Properties, envisions a 1-million-sf plus mixed-use center with a large retail pavilion.
Contractors | Jul 29, 2015
Consensus Construction Forecast: Double-digit growth expected for commercial sector in 2015, 2016
Despite the adverse weather conditions that curtailed design and construction activity in the first quarter of the year, the overall construction market has performed extremely well to date, according to AIA's latest Consensus Construction Forecast.
Office Buildings | Jul 23, 2015
Office bust hits suburban Washington D.C.: metro area awash in vacant office buildings
Most of the building and buying is happening within the city’s limits.
Office Buildings | Jul 21, 2015
Finally! There's a workplace trend that’s worth embracing
There’s a realization by corporate real estate executives that in order to create a successful workplace, there must be alignment between their people, their place, and the tools they have to do their jobs.
High-rise Construction | Jul 20, 2015
Morphosis' Casablanca Finance City tower to be topped with crown-shaped pinnacle
The tower will anchor a new business district being planned, similar to the glass and concrete business La Défense section at the outskirts of Paris.
