Major Office Trends, Compression In Space

At a recent SIOR National Conference a few tidbits on the future of office usage in the United States. There appears to be long-term significant compression of how much office space a number of major corporations are planning for. An overall 25% reduction in office usage due to long-term partial remote workers not needing to come to the office on a regular basis. There is also a new hiring trend where employees are sought out as remote workers, which again can have a long-range impact on how companies utilize their office space. Not to overuse the word ‘compression’ but this might be applied to rental rates as this flood of sublease space competes with direct space, and as leases expire, become direct space.