Nothing will be the same again in this post-pandemic era. Vacant office spaces in the USA are also indicating this trend.
Vacancy rate of the office in the USA in 2019-2022
According to “Statista”, the vacancy rate for 2022 is an average of 12.3 percent in the USA which is less than in previous years. In the second quarter of 2021, the rate was an average of 17.2%. The current number indicates that among 8 office spaces 1 of them is vacant due to the pandemic. The primary reason for the vacancy is people shifting their work setting to home.
The vacancy rate in Silicon Valley
Silicon Valley vacancy rate has been improved in the first three months of 2022. The office space vacancy rate has improved from 10.6 % in January to March. The rate has decreased for the first time in two years, meaning the situation is being healed after the pandemic hit. However, still, some limitations are there. in the first quarter of 2021, the Silicon Valley vacancy rate was 9.4%.
The workplace may never be the same again
The aftermath of Covid-19 has changed the office environment. The economic situation also has some effects. Commercial real estate is at a higher rate, many businesses are at loss. In addition, people are enjoying working from home. As a result, considering all the possibilities, offices are renting small spaces and encouraging employees to work from home. With this strategy businesses do not have to pay for large spaces. So, the existing office spaces might stay vacant until some new company wants to rent them for their office space.