Not unexpectedly, one consequence of the work-from-home and hybrid work schedule phenomenon is a growing wave of so-called Zombie office buildings whose utilization rate is 50% or less. And also not surprisingly, their numbers are growing as return to work initiatives seem to bounce off employees determined to stay remote.
A recent report by the Boston Consulting Group found that, on average, vacancy rates have increased from 12% to 17%, and utilization has dropped from 70% to 42%.
An earlier report from Avison Young backed into this trend, finding that no more than two-thirds of the current office stock will be necessary.
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