Return-to-Office Fails to Revive the Struggling Office Sector

Despite numerous companies mandating a return to the office, data reveals that actual office attendance has barely budged since early 2023. Kastle's weekly back-to-work barometer shows an average occupancy rate of only 54% of pre-pandemic levels in the top 10 office markets. Meanwhile, the percentage of work-from-home (WFH) days remains high, exceeding 29% of all full-paid days. This indicates that many companies have adapted to hybrid work models, with WFH proving effective in boosting productivity and reducing office costs. Therefore, hopes that return-to-office initiatives will rescue the commercial real estate office sector appear premature.