NEW YORK - Remote work has caused a "black hole" in U.S. office occupancy, knocking demand significantly below pre-pandemic levels and vacancy rates to historic lows, with a recovery to prior usage unlikely for years, said real estate analysis firm Green Street.
The result has caused cumulative net absorption - the amount of leased space less what has been vacated - to have declined by 130 million square feet of U.S. office space since 2020 COVID-19 pandemic, the firm said in a note called "The Black Hole of Office Occupancy" on Thursday."The last four years of disruption in the office market have been the worst on record," said Newport Beach, California-based Green Street.
The peak dot-com occupancy levels of office space of the late 1990s have not been reached since then, and it took 11 years after the 2007-2008 global financial crisis to recover to pre-GFC occupancy levels. This cycle, however, is likely to play out differently as it will take a lot more new jobs to generate the same level of office demand as in the past because remote work will act as a long-term headwind on office demand.NEW YORK — Donald Trump claimed Friday to have almost a half-billion dollars in cash but said he'd rather spend the money on his presidential run than on the $454 million civil fraud judgment against him in New York.
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