The COVID-19 pandemic ushered in a new era of remote-work policies—and led to a drastic downturn in the demand for office space in the United States. Research by New York University’s Arpit Gupta, University of North Carolina’s Vrinda Mittal, and Columbia’s Stijn Van Nieuwerburgh finds that office occupancy in major US office markets tumbled by 90 percent from the end of February 2020 to the next month, as buildings emptied out. Occupancy rates recovered by the end of 2023, but were still at about half of their pre-pandemic levels.Today, the uncertainty around working from home continues to depress office occupancy, lease revenue, and lease renewal rates in commercial real estate. But hybrid work creates some reason for hope. The researchers find that office-space demand from 2019 to 2023 fell by about 41 percent for companies whose workers were expected to be in the office only one day per week...
RSK: This is a robable spiral for large cities with a major downtown office presence. The tax rolls will diminish significantly....and will the rest of the taxable real estate be able to make up for it? Look for service cuts in the near future.Madison Is not immune to this scenario.
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- - Volume: 25 - WEEK: 8 Date: 2/18/2025 2:10:05 PM -