Quick Takeaways

  • Inflation still remains high but the pressure is beginning to wane
  • Leasing activity fell 10.8% in the fourth quarter
  • This brought leasing to 72% of its pre-pandemic volume nationally

Source: US Office Market Statistics, Trends & Outlook Q4 2022 (JLL, Jan. 19, 2023)

The COVID-19 pandemic and the resulting work-from-home orders have greatly affected every facet of real estate, and many office buildings are taking on new lives. Both employers and developers have had to get creative, enticing people back to the office with improved safety precautions and luxury amenities. The recent uptick of the Delta variant has slowed the market back down after a hopeful looking spring and summer, but experts do not expect the market to slow to a 2020 level.

Co-working has also taken on a whole new life post-pandemic. Though many are not eager to share space with strangers, it has also provided dedicated work space in a year (almost two) when our homes became our offices, gyms, and schools. WeWork and four other co-working companies have just signed a contract with the federal government, the first of its kind.

Three years later, the Covid-19 pandemic continues to affect work life in many ways. After many Americans spent some amount of time working completely remotely, 2022 saw a variety of office return schedules. Hybrid work – a combination of designated in-office and remote days – seems to be here to stay, but only time will tell exactly how it will affect the office property market.

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