A Faster Than Expected “Return to Office” Rollout Is Boosting Investors’ Confidence
“The stance of dramatically reducing office space as a result [of the pandemic] has softened in recent months,” notes one market observer.
May 19, 2021 | Patricia Kirk | Wealth Management
Initially, office-using employers were expected to begin a return to the office after Labor Day. However, that timeline now appears to be accelerating. Firms ranging from JP Morgan to Google have moved up their return dates. “A faster-than-expected vaccine roll-out and removal of restrictions in many gateway geographies has resulted in a number of high-profile financial services tenants pushing up their return-to-work expectations to mid-summer,” says Eric Enloe, managing director for valuation and advisory services with real estate services firm JLL.
An April Global Occupier Survey administered by real estate services firm CBRE found that office-using companies anticipate a return to a more normal level of office occupancy as 2021 progresses, according to Julie Whelan, head of occupier research for the Americas with the firm. “A slow wave of employees will return over the summer and ramp up in the fall once new routines can be put in place,” she says. But Whelan cautions that pre-pandemic occupancy levels are unlikely to be reached in the near-term.
Implementing new workplace designs, sorting out hybrid schedules and accommodating parents whose children may still be learning remotely will continue to impact the rate of which companies bring their employees back to the office at scale, notes Enloe.
