A 50% Office Occupancy Rate Means Trouble for US Cities
The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 

A 50% Office Occupancy Rate Means Trouble for US Cities

/ Brief

More than four years after the onset of the COVID-19 pandemic, a significant and likely long-term shift in the way offices are used is taking place. As employers continue to embrace hybrid and remote work models, the decline of in-person office occupancy rates is having a major impact on US cities.

More than four years after the onset of the COVID-19 pandemic, a significant and likely long-term shift in the way offices are used is taking place. As employers continue to embrace hybrid and remote work models, the decline of in-person office occupancy rates is having a major impact on US cities.

Trusted Insights for What’s Ahead™

  • Employees in metropolitan areas with longer commutes, higher costs of living, and concentrations of knowledge-based industries are embracing hybrid/remote work, resulting in lower in-office occupancy. The average weekly in-person office occupancy rate has stabilized at about 50%, and this has been the standard since Q4 2022.
  • Employers are continuing to adopt hybrid and remote work flexibility as employees have shown this is a priority for them. Especially amid a still-tight labor market, flexibility gives employers leverage in hiring and retaining staff. An estimated 69% of US companies are offering hybrid or remote flexibility to employees, up from 51% in Q1 2023.
  • Still, the decline in office occupancy bears significant consequences for the commercial real estate (CRE) industry and cities. Increasing vacancies are weighing on tax re
This publication is available to you, but you need to sign in to myTCBTM or create an account to access it.To learn more about becoming a Member click here. To check if your company is a Member, click here

Forgot Password?

 

Keep my computer signed in

 

By Clicking 'Create Account',
You Agree To Our Terms Of Use

Create Account  

Members of The Conference Board get exclusive access to Trusted Insights for What’s AheadTM through publications, Conferences and events, webcasts, podcasts, data & analysis, and Member Communities.

Author

Erin McLaughlin

Erin McLaughlin Erin McLaughlin

Senior Economist, ESF Center
The Conference Board

Read Bio

Other Related Resources

✕
hubCircleImage