by Wolf Richter
Office vacancy rates are already huge, foreclosures of office towers are piling up, and office attendance is still very low, everywhere.
At the end of 2019, state and local governments leased 22.6 million square feet (sf) of privately owned, corporate-grade office space in the US, according to data by JLL US Office Research, cited by Bisnow. But thanks to the shift to the hybrid model, combining office and working-from-home, governments are reducing their office footprint. And by the end of 2021, the total amount of privately owned office space that state and local governments leased dropped by nearly 10%.
And this is just the beginning. JLL estimates that over time state and local governments could shrink their office footprints in leased privately owned buildings by 25% or 30%.