US office occupancy faces ‘black hole’ of remote work, says Green Street
Written by Black Hot Fire Network on March 22, 2024
By Herbert Lash
NEW YORK (Reuters) - 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 . . .
