America’s shift back to office work is gaining momentum, as companies increasingly abandon the flexible policies established during the pandemic, The Wall Street Journal reports.
Companies such as Amazon and Dell are now mandating full-time office attendance, with one-third of companies requiring employees to be on-site five days a week, marking a slight increase from previous quarters.
While the overall vacancy rate for office spaces hovers around a record high of 13.8%, some signs of stabilization are emerging, with occupied space remaining flat in recent months after eight quarters of decline.
Despite this, many office spaces are considered obsolete and delinquency rates on office loans have risen to their highest level since 2013. Companies are adapting by seeking attractive amenities to entice workers back, leading to increased leasing activity in prime locations. Investor interest in distressed properties is also on the rise, with a marked increase in sales. While the office market faces ongoing challenges, the worst may be over, suggesting a potential rebound ahead.
