U.S. office space in transition: Shifting demand in 2025?


U.S. office space in transition: Shifting demand in 2025?
Three key trends are unfolding simultaneously: office-using employment continues to grow, the amount of occupied office space is gradually increasing, and the share of fully remote job postings has dropped considerably since 2022. Together, these shifts suggest a growing preference for in-office work, which could drive higher office utilization and leasing activity throughout 2025. As several major organizations, including the U.S. government, Amazon, and JPMorgan, enforce stricter attendance mandates—some requiring five days per week—companies may have a renewed demand for office leasing, especially after many have reduced their footprints over the past few years. At the same time, many occupiers are prioritizing modern, amenity-rich offices, driving stronger demand for trophy space. With trophy availability tight and little new supply planned, this demand could spill over into A+/A space, further boosting the office market. ...more RSK: Graph shows a return to office is increasing.
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Three key trends are unfolding simultaneously: office-using employment continues to grow, the amount of occupied office space is gradually increasing, and the share of fully remote job postings has dropped considerably since 2022. Together, these shifts suggest a growing preference for in-office work, which could drive higher office utilization and leasing activity throughout 2025.
As several major organizations, including the U.S. government, Amazon, and JPMorgan, enforce stricter attendance mandates—some requiring five days per week—companies may have a renewed demand for office leasing, especially after many have reduced their footprints over the past few years.
At the same time, many occupiers are prioritizing modern, amenity-rich offices, driving stronger demand for trophy space. With trophy availability tight and little new supply planned, this demand could spill over into A+/A space, further boosting the office market.