Barron's: Millions of Workers Not Going Back

If you’re invested in Office Space REITs you might want to take heed:

Barron’s headline: The Boss May Not Like It. But Millions of Workers Aren’t Coming Back to the Office.

By Evie Liu
Sept. 3, 2022 7:00 am ET

Across the top 10 cities in the nation, the occupancy rate of office buildings was only 43% recently, according to security firm Kastle Systems that tracks card swipes as a barometer. Before the pandemic, the rate was 99%.


As their previous leases expired during the pandemic, many companies negotiated short-term extensions of only a year or two due to high levels of business uncertainties, says JLL’s Homa. Before the pandemic, the typical renewal term was between five to 10 years.

This means there is a high volume of office space set to expire in 2022 and 2023—about 28% above the trailing three-year average before the pandemic.