Don't let the Trees Obscure your Goal.

When will office occupancy return is a question on everyone's mind.

Posted by Greg Hugo | Dec 10, 2021 | 0 Comments

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…

https://www.bisnow.com/national/news/office/survey-office-return-reaching-highest-levels-since-pandemic-111202

About the Author

Greg Hugo

I was the Rookie of the Year in 1984 in the San Francisco East Bay office of CB Commercial Real Estate (CBRE). I have represented hundreds of Lessees, Lessors, Buyers and Sellers in well over a thousand transactions and evaluations during my 35+ year career at three major brokerage firms: repre...

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