The company believes that the year-over-year change is a new trend in demand for office space and will continue to do so for a variety of reasons. For one, the job market is healthy but cool, with bargaining power shifting back from employees to employers, who want employees to come into the office. Additionally, work-from-home rates are at their lowest in months since the pandemic. Third, employers are increasingly having to make decisions about lease expirations and office occupancy.
According to VTS, FIRE industry sectors such as finance, insurance, and real estate continue to traditionally rely on office-based jobs and remain the baseline. TAMI departments (technology, advertising, marketing, and information) have a more favorable relationship with remote work.
However, a new trend is emerging. TAMI Companies have recently begun to gravitate toward offices. VTS emphasizes that this is a situational move based on the rise in office leasing in places like Boston. Chicago; Los Angeles; New York City; Washington, DC; and San Francisco.
“However, this is suggestive and consistent with anecdotal evidence that at least some tech sector companies are shifting stance towards stimulating demand for office space,” they wrote.
