CEO’s Confident Workers Will Return To The Office

A recent 2023 U.S. CEO Outlook survey by corporate-services firm KPMG poll showed that CEO confidence in having their employees return to the office almost doubled over the past year,, and while 45% believed that workers would continue in hybrid positions last year, in 2023 only 34% believe this. Last year 20% of CEOs thought corporate jobs might be fully remote, but in 2023 only 4% believe this will be the case. Right now, in much of the United States 50% of workers have returned to the office, many coming in two to three days a week, while in Texas this figure is closer to 60%. In my opinion over the next 2-4 years this will increase from 50% to 70% and then level off, and we will not see the office occupancy of pre-Covid ever again. Companies will still make record profits, and those mandating may make exceptions for exceptional employees they do not want to lose to competitors. There still be a significant portion of the workforce who either relocated away from the mother ship or has grown to like saving 2-4 yours a day not commuting.  AI may displace a sizable portion of our office workers as well. The bottom line for our nation is we have far too much office space, both short and long term, then our actual office space demand. New construction will happen in select sub-markets, and there will be demand for the newest, glitziest, safest, and amenity-filled office tower by those corporations willing to pay a premium for premium space. Over time obsolete buildings will be razed or converted to make room for housing or other uses.