While the national office vacancy rate has reached a record high, the tide may soon begin to turn, Fast Company reports.
The year-end report from commercial real estate advisory firm Moody’s shows that office vacancy reached 20.4% as of the fourth quarter of 2024, 3.6% higher than it was five years ago.
Much has changed for office real estate since the pandemic broke out early 2020, with hybrid work becoming commonplace and companies adjusting their lease terms and office square footage to accommodate uncertainty and lower demand. The new record vacancy rate is a reflection of just how long-lasting the impacts of the pandemic have been on offices.
But the emptying of the American office may soon come to an end as more companies require their workers to come into the office more regularly.
“Over the course of this next year, we’re probably expecting it to eventually bottom out,” says Nick Luettke, associate economist at Moody’s and a co-author of the year-end report.
