by King White, on Sep 5, 2024 8:00:00 AM
As the U.S. continues to navigate the post-pandemic economy, businesses are reevaluating their workplace strategies, significantly impacting office occupancy and the labor market. In this blog, Site Selection Group explores the latest return-to-office percentages across major U.S. metro areas, the shift in job opening data toward fewer fully virtual positions, and the broader trends driving more stringent office attendance policies.
Current return-to-office rates by metro area
While specific percentages vary, major metro areas like Philadelphia (47.5%), San Jose (49%), Washington D.C. (50.4%), and San Francisco (52.8%) are lagging behind other metro areas such as Houston (70.5%), Chicago (67.4%), Austin (66.6%) and Dallas (66%) for returning to the office. Businesses in sectors such as finance, legal and consulting are leading this shift back to the office with many now requiring employees to be in office at least three days a week. The following diagram provides a snapshot of occupancy rates during August 2024 compared to prior years.
Trends in remote job openings
Recent data suggests a decrease in the availability of fully remote positions as companies recalibrate their operational needs and workplace cultures. This trend reflects a broader reassessment of remote work’s effectiveness, with many employers emphasizing the value of in-person collaboration and oversight. Remote job listings remain higher than pre-pandemic levels but have declined from their peak. ZipRecruiter data reports that 11.7% of total U.S. job postings were remote from January 2024 to June 2024, roughly equal to 2023 levels. This is down from 13.66% in 2022 but higher than in 2021 (11.37%), 2020 (7.99%) and pre-pandemic 2019 (4.25%).
Increasing office days: A new norm
An increasing number of companies are mandating a minimum of three days in the office, a policy shift that reflects growing confidence in office work’s benefits for team dynamics, employee engagement and productivity. This change is partly due to managerial feedback indicating the challenges of sustaining culture and mentoring in fully remote setups. Companies such as Amazon, Apple, Boeing, Google, JPMorgan Chase, Meta, UPS and Zoom require employees to be in the office at least three days a week.
Impact on office vacancy rates
The push for more in-office days will likely influence office vacancy rates positively. As more businesses enforce return-to-office mandates, we can expect a gradual decrease in the high vacancy rates that have characterized the market since the onset of the pandemic. However, the full impact will depend on ongoing economic conditions and business confidence. For additional details, read Site Selection Group’s blog from May on The Impact of Return to Office: 1 Billion Square Feet of Office Space is Available in the U.S.
Economic factors influencing return-to-office policies
The slowing economy might actually empower employers to enforce return-to-office mandates more rigorously. Economic uncertainty often leads businesses to seek more control over their operational processes and workforce efficiency, which are more manageable with a higher level of in-person attendance.
Conclusion
As we move further into 2025, the interplay between economic health, corporate culture and technological adaptations will continue to shape the U.S. office market. For businesses considering their future workplace strategies, understanding these trends will be crucial in making informed decisions that align with both corporate objectives and employee expectations.
