Four years after the onset of the COVID-19 pandemic, its effects are still felt in the construction and real estate sectors in the United States. Accelerated remote work and hybrid schedules are leading to a sharp decline in demand for traditional office space in cities across America. In major metros like New York and San Francisco, occupancy rates have dropped, property values have diminished and rents have fallen significantly. As architects design for the future of work, the real estate market faces divided perspectives on whether to invest in the country's growing inventory of vacant office buildings.
Cities across the United States are experiencing some negative effects of the work-from-home era. As people migrate to the suburbs in search of affordable living conditions, the value and occupancy rates of downtown office buildings continue to decline. According to a report by McKinsey, rental prices for office spaces in New York City fell by 18% between 2019 and 2022. In San Francisco, rents decreased by 28% over the same period. On the contrary, office properties in Atlanta saw their dollar value increase by 31% from 2019 to 2022, bucking the larger trend.
