Will office spaces shrink further?

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What is your plan for building a mixed work arrangement? Sarah Lynch, a staff reporter at Inc. believes the office space will get emptier as the world of work continues to evolve. The following article is culled from Inc.

Twenty-four percent of U.S. office space will be vacant by early 2026, according to a new report from Moody’s and first reported by Bloomberg. That’s up from the 19.8 percent vacancy rates reported in the year’s first quarter, per Moody’s–which marked a new record as well as an increase from the 19.6 percent reported in in the fourth quarter of 2023.
To Todd Metcalfe, Moody’s associate director of commercial real estate forecasting and one of the authors of the report, it’s a sign that the “office market is going to catch up to how people already are working.”

Indeed, work-from-home time is now a fixture for many Americans. In late 2022 and 2023, work-from-home time in the U.S. flatlined roughly around 30 percent, according to data from the WFH Research group. In May, it did fall to the lowest level yet–26.6 percent–but remains well above pre-pandemic rates.

Still, Metcalfe says, the “office isn’t going away.”

Hybrid has emerged as the most common and preferred arrangement for remote-capable employees, according to data from Gallup–so the office will still be a core component of many workplaces. Not to mention the companies still enforcing full-time office attendance, Metcalfe adds: “There’s not a one-size-fits-all policy.”

For companies still using the office at least part of the time, coordinating and prioritizing in-person collaboration is key, experts have told Inc. “Otherwise,” Gallup’s chief workplace scientist Jim Harter said, “it’s chaotic, and people continue to regret the commute.”

Toyin Afilaka
Toyin Afilaka
Toyin Afilaka writes with simplicity and insight. He aims to enrich the Nigerian small business landscape. Through Hustle24 he connects entrepreneurs with information about new policies, enterprise solutions and opportunities that will aid their 'hustle'. He has written extensively for CobraReview, a product review portal, and served as a lead project manager for MarketingMix where he consulted as PR consultant for MTN Project Fame and Business Next Titan etc.

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