Average office occupancy will likely "never" return to pre-pandemic levels, according to one US-based analyst surveying the sector.
In a recent webinar on the state of the global office market, Green Street's Daniel Ismail said that while his assessment may be a "bit tongue-in-cheek…structural vacancy in the US has risen several hundred basis points."
"To put it simply, if remote work causes a reduction in office demand, and if the US supply growth continues at about 1% per annum, unless you have a mass conversion of office space, or demolish office space over the next few years, you're going to get elevated vacancies across the US," he said.
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