Highlights:
- According to Placer.AI – a startup that uses cell phone data to
analyze foot traffic patterns down to the property level – employee
office visits were 31.3% lower than compared to February 2020 and 18.6%
higher than February 2023.
- Perhaps unsurprisingly, among the
eleven metros included in Placer’s report, San Francisco’s office
recovery has been the most mired with office visits (as of February
2024) 46% lower relative to February 2020. However, relative to February
2023, office visits in San Francisco were 24% higher, which was the
second-highest percentage increase (behind Dallas) among those select
metros.
- Combining the Placer.AI with Moody’s CRE data indicates that
higher employee utilization rates do not necessarily translate into
higher office occupancy rates (but typically do when measured over
longer time intervals). The measurement period, sample size, long-term
nature of office leases are a few obvious factors affecting this
relationship – although unquestionably, increased foot traffic in
downtowns bodes well for nearby retail establishments and local
municipalities.
...more RSK: I like their method of calculation on office visits compared to office occupancy....good graphics.
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