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Office Usage Is Up, But What About Vacancy?

Vacancy rates are still ticking up in New York and San Francisco despite a recovery in utilization rates.

By Lynn Pollack | May 16, 2022 at 08:22 AM

There’s no denying that the WFH trend is leading to higher vacancy rates in the office sector, but according to a trio of analysts from Moody’s, “there’s more nuance than meets the eye.” 

Data from Kastle Systems shows that physical office usage hit 40.5% nationally last month, the highest since the onset of the COVID-19 pandemic in 2020.  The physical utilization rate has been climbing since then, save a few dips related to the outbreak of new variants.  And by the first quarter of this year, many large employers began implementing return-to-office plans.

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