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Average office occupancy in 10 major U.S. metros came in at 44% of pre-pandemic levels during the first week of June, the highest mark since the pandemic began in 2020, according to Kastle Systems. The week before occupancy was 41.2%, a drop from previous weeks in May that probably reflected the Memorial Day weekend.
More people are searching for available office space now than before the pandemic, in what analysts at CommercialCafe are calling “a much more encouraging outlook” for the sector. More office space = more office furniture.
After declining substantially in 2020, searches for office space for rent followed a positive pathway in 2021, while nearly a quarter of respondents surveyed by the firm said they were looking to downsize their overall office footprint. Around 23% said they’d like to be the sole tenants in a building, while another 23% said they were looking for a better deal in terms of price per square foot. And 16% said they were looking for larger office spaces.
Fully remote working is no longer viewed as the ‘holy grail’ by tech employers, with hybrid working now viewed as the perfect model for aiding retention and recruitment of talent. That is the main conclusion of Robert Half’s Demand for Tech Talent report, which surveyed 750 tech hiring managers across the UK. The results of the survey suggest that remote working – which the report claims was widely touted as the ‘future of work’ both before and during the pandemic – is now being shunned by companies in favour of a flexible approach.
During the pandemic, more than half (52 percent) of employers moved to a policy of fully remote working. Perhaps inevitably, this has now dropped back to a third (34 percent). However, of those that had a fully remote workforce prior to the pandemic, 28 per cent have now abandoned that policy in favour of a hybrid model, suggesting a decline that goes beyond a return to normal.
Employees have never been more stressed, according to Gallup’s State of the Global Workplace 2022 Report, which was conducted in 2021 and released today.
Among workers surveyed, 60% report feeling “emotionally detached” while at work, and 19% consistently feel “miserable.” These numbers are higher than those reported in 2020, which had previously set records for the percentage of employees who reported feeling stressed on a daily basis.
The Gallup report notes that these findings are concerning given that, on average, people spend a staggering 81,396 hours of their lives working. The only activity we spend more time doing is sleeping.
Return-to-office (RTO) plans are the talk of the town, but not everyone is saying the same thing. While most agree that hybrid work is the way of the future, protocols and policies vary. Safe to say, the concept of remote-first remains a work in progress.
For their part, a growing number of employers are increasingly pressing for a return to the way things were, circa 2019, complete with back-and-forth commutes, in-person meetings, whiteboard sessions and those chance water cooler encounters that changed the world.
Foot traffic data from major US cities supports the proposition that companies are adjusting to a more permanent view of hybrid work, according to a new analysis from Placer.ai.
The company’s data reveals that the office recovery hasn’t been consistent across metros: while visits to offices in San Francisco, New York City, and Chicago are still significantly below pre-pandemic levels, year-over-three-year office visits in San Francisco were down by -67.8%, compared to 40.6% and 45.7%, respectively, in New York and Chicago.
Increased flexibility is seeing more employees increasingly log into work from cafés, hotel lounges, and coworking spaces, according to JLL’s latest Workplace Preferences Barometer.
There is “no question” that office occupiers have been the least impacted by inflation, according to one industry economist—but that doesn’t mean they’re immune from the challenges wrought by the current economic environment.
In a new analysis, Cushman & Wakefield’s Rebecca Rockey notes that since office occupiers are generally service providers, they’ve had it easier when it comes to inflation. But there’s a catch: “they are experiencing no shortage of challenges as they adapt to work-from-anywhere and intense competition for talent that now has fewer city-edge borders,” she writes. “Companies are also struggling to commit to new pay models for remote-first or mainly-remote workers who can potentially have a much lower cost-of-living than non-remote workers in similar roles.”
