Issuing a directive that turns back the clock to an earlier era when staff obediently showed up for work at 9 am and left at 5 pm sounds simple enough. But the costs to companies of return-to-office (RTO) policies may be significant as employees leave work earlier than before to meet 6pm childcare pick-up deadlines and other obligations.
A study by JLL of five large financial services companies in New York found that on average employees in 2025 were leaving work 13 to as much as 30 minutes earlier than in 2019, based on cellphone tracking data. The trend across millions of highly paid employees equates to millions in lost productivity costs, it said.
“In fact, if you look at suburban commuter hubs, like Summit NJ, the peak hour of transportation home has shifted from 6pm in 2019 to 4pm in 2025,” the report stated.
However, other large cities have seen even greater shifts in office departure times. In Chicago, commuters are leaving 22 minutes earlier than in 2019, in Dallas 18 minutes earlier and in San Francisco 26 minutes earlier.
JLL said many of its portfolio clients are keen to understand this factor when trying to evaluate and rank markets and submarkets.
“The real question is: what time does someone need to leave the office to reliably reach their suburban destination by 5:45?”
RTO mandates are continuing to increase across sectors, expanding from financial services firms, where such policies have long been in place, to tech and professional services firms. The report cited Placer.ai data showing New York RTO rates at 88% of pre-pandemic levels – even as the number of suburban residents increased by 45,000. One-third of this growth was in areas beyond the traditional suburban core like Suffolk and Long Island with longer commuting distances.
RTO demands raise challenges for both employees and employers, the report points out.
Employees could respond to the stress caused by RTO policies by moving back to central cities, or moving to secondary cities that offer time and other savings, or by making the decision to become one-earner households. Companies may have to decide whether to accept more flexible working conditions and what the risk is of losing valuable employees if allowances are not made.
On the other hand, companies can avert some of these consequences by making appropriate locational decisions. “Location and commute matter more than ever. Buildings with direct suburban transit access are likely to remain a priority for companies that rely on suburban talent pools and value consistent in-office attendance,” JLL stated.
“Buildings near major transit hubs like Grand Central and Penn Station consistently see stronger return-to-office rates and leasing velocity. Proximity to reliable, time-saving transit has become a competitive advantage for companies focused on suburban talent.”
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