The office vacancy rate has increased to 20.1% with no signs of slowing until 2026. pic.twitter.com/F004bmZXT3
— Wealthion (@wealthion) August 28, 2024
The office vacancy rate in the U.S. has indeed reached a record high of 20.1% as of the second quarter of 202412. This is the highest rate since at least 19791. The increase is largely attributed to the lasting impact of the COVID-19 pandemic, which has permanently changed work patterns, leading to a reduced need for office space.
Projections indicate that the vacancy rate is expected to continue rising, potentially peaking around the end of 20261. This trend is driven by long-term leases taking time to unwind and the ongoing shift towards remote and hybrid work models.
Sources:
www.axios.com/2024/07/09/office-vacancy-rate-record-high
www.facilitiesdive.com/news/us-office-vacancy-rates-moodys-analysis/720862/
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