Remote work has caused a “black hole” in U.S. office occupancy, knocking demand significantly below pre-pandemic levels and vacancy rates to historic lows, with a recovery to prior usage unlikely for years, said real estate analysis firm Green Street.
In addition to the decline in demand due to working from home, the office sector also faces headwinds from companies that are now more cost-conscious with their budgets, the firm said.
The result has caused cumulative net absorption – the amount of leased space less what has been vacated – to have declined by 130 million square feet (12.1 million square meters) of U.S. office space since 2020 COVID-19 pandemic, the firm said in a note called “The Black Hole of Office Occupancy” on Thursday.
Recent Comments