The 10 largest US office markets are currently averaging 40% worker occupancy with a high of 59% and a low of 28%. Stop for a long moment…………what this really says is that 60% of the workers in the 10 largest US markets are not in an office. This 60%!… is Shocking.
San Francisco Office occupancy is 28% and Bay Area Bart ridership is the same 28% when compared to pre pandemic levels. This 72%....is more than shocking?
When will office occupancy return is a question on everyone's mind. The answer is unfolding.
The major Social Media, Tech and Content Creation Companies have an almost insatiable need for worker growth as revenues have skyrocketed during the pandemic. In the last two weeks META (Facebook) has leased +/- 1.25 million square feet in the SF Peninsula and the South Bay markets. Other MTC tenants are touring with renewed appetites.
Not so in the traditional downtown office, Standard Industrial Code (SIC) "FIRE" tenants, namely the Financials, Insurance & Real Estate groups. Working from home or in smaller "Hub & Spur" spaces seems to have entered the FIRE tenants DNA like never before…
In summary, in each individual market to observe future office occupancy study the current lease tenant Tour data by tenant category.
And oh yeah, don't forget Covid…
Comments
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment