Empty Office Buildings Across America Reach All-Time High

Empty office buildings are becoming a common sight in downtown areas across the United States. According to a recent study by Cushman & Wakefield, approximately one-fifth of office space in the country is vacant, with cities like Los Angeles and Houston experiencing rates as high as 25%. Even cities like Savannah, Georgia, and Naples, Florida, are not immune, with vacancy rates below 5%.

David Smith, head of Americas Insights at Cushman & Wakefield, points out that the high vacancy rates are not solely due to the shift to remote work prompted by the COVID-19 pandemic. Economic uncertainty, surplus of new constructions, and a trend toward subleased spaces also contribute to the problem.

Despite these challenges, Smith remains hopeful, citing projected job growth and a trend among companies toward bringing employees back into the office. However, the debate over return-to-office policies continues as employers and workers navigate the post-pandemic landscape.

Some companies, like Zoom, are increasing mandatory in-office days for employees, while others are requiring employees to relocate near office hubs. This shift comes despite reports of increased job satisfaction and productivity among remote workers.

With office vacancies on the rise, some are considering repurposing empty buildings for residential use. San Francisco and Washington, D.C., have already taken steps to facilitate office-to-residential conversions, but the process is expensive and complicated, particularly for buildings constructed after 1950.

Robert Fuller of the architecture firm Gensler explains that older office buildings tend to be more suitable for conversion due to their design, whereas newer buildings present challenges such as lack of natural light.

Ultimately, Smith believes that the office will remain a central part of the U.S. economy for years to come. “I think this is an opportunity for the office market as well to redevelop itself. And actually, in 10 or 15 years, we’ll look back and the office market will have revolutionized itself in a really exciting way,” he explained.