As the pandemic subsided in 2022 and 2023, US business hubs in both large and small cities continued to feel the impact of remote and hybrid work policies. This resulted in a significant decrease of office space usage by 20% to 40% and a decline in property values. The shift to remote work left downtown areas deserted for an extended period.
However, there has been a gradual return to office spaces in commercial districts, with the average occupancy rate now exceeding 60%.
Despite this progress, many offices still remain either partially or completely vacant.
“We are witnessing nearly five years of decline in the office market,” stated Peter Miscovich, who serves as the global future of work leader at Jones Lang LaSalle IP (JLL), a company specializing in commercial real estate and investment management services. “Certain regions are showing signs of vacancy stabilization.”
A notable trend influencing the repopulation of corporate offices is the implementation of return-to-office (RTO) mandates. For instance, Amazon’s CEO Andy Jassy recently instructed employees to resume working at the office five days a week starting early next year. Ericsson has also enforced stricter attendance policies for its employees.
Earlier this year, Dell Technologies required many employees to return to their corporate offices and more recently mandated its global sales team to be present at the office every weekday. Just last week, senior executives at 3M were directed back to corporate headquarters.
2024-11-17 17:15:03
Original from www.computerworld.com