Remote work remains a top choice for many U.S. workers, leading to empty office spaces as traditional commuting to an office becomes a thing of the past for corporate employees.
Moody’s has highlighted the uncertainty surrounding the office sector as leaders in commercial real estate explore converting office spaces into residential units to meet the demand for housing. The firm’s data suggests that employees still required to come into the office may spend two fewer days working in-office on average.
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CBRE has noted a significant increase in office-conversion projects, with approximately 70 million square feet of office space, representing 1.7% of the total U.S. supply, being repurposed for residential or other uses. The firm reported a rise in first-quarter conversion projects compared to the previous year, with the 2023 figure accounting for 1.4% of the total supply.
CBRE projects around 120 conversion projects to be completed in the U.S. this year, one-third of which will create multifamily spaces.
