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JULY 2023 OFFICE INDEX RECAP

by 
Lila Margalit
 on 
August 8, 2023


The Placer.ai Nationwide Office Building Index: The office building index
analyzes foot traffic data from 800 office buildings across the country. It only
includes commercial office buildings, and commercial office buildings on the
first floor (like an office building that might include a national coffee chain
on the ground floor). It does NOT include mixed-use buildings that are both
residential and commercial.

Return-to-office mandates continue to be the talk of the town. Earlier this
month, the White House called on federal agencies to “aggressively” implement
on-site work policies – and Google announced a special $99 deal for employees
who choose to stay on campus to avoid their commutes. Even Zoom of all companies
(ahem) jumped on the in-person bandwagon, calling workers back to the office for
the first time since COVID. 

So with summer in full gear, we checked in with our Office Building Index. Did
the signs of accelerated recovery we noted last month persist into July? And
what differences can be observed between cities?


TWO STEPS FORWARD, ONE STEP BACK

On a nationwide level, return-to-office mandates appear to be slowly but surely
moving the needle. Visits to office buildings in July 2023 were 0.8% lower than
they were in June – but still higher than they’ve been during any other month
since the pandemic. At the same time, July office foot traffic remained 37.0%
below 2019 levels, indicating the continued strength of the hybrid model. 




SAN FRANCISCO IN FOR THE YEAR-OVER-YEAR WIN

Regionally, Washington, D.C. continued to lead in overall office recovery, with
the smallest year-over-four-year (Yo4Y) visit gap of any analyzed city – just
22.4% in July 2023. But San Francisco, where return-to-office has been
particularly sluggish, saw the greatest year-over-year (YoY) jump in visits.
While San Francisco office foot traffic dipped slightly in July 2023 compared to
the month before, it remained higher than it’s been at any other time since
COVID. Other cities too – including New York, Denver, Boston, and Chicago – saw
the most office visits in July 2023 that they’ve seen since before the pandemic.




LOOKING AHEAD

But despite continued signs of accelerated recovery, the future still seems to
be hybrid. Indeed, as if we needed additional reasons to bet on the staying
power of hybrid work, WFH Research’s new study showing that fully remote work
harms productivity – but that hybrid arrangements don’t – seems to be a
clincher. The research, which generated plenty of media buzz, showed what we all
know to be true: People communicate better in person and need human interaction
to thrive. But that doesn’t mean they need to be in the office five days a week.
And working from home part of the time can enhance employee satisfaction – while
saving critical time and money.

The study concluded that WFH, in some configuration, is here to stay. And while
the recent push by many companies to get workers back to the office appears to
have led to an increase in office visits, location intelligence continues to
highlight the robustness of the hybrid model. 

For more data-driven real estate insights, visit Placer.ai.

‍


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Lila Margalit

View all posts



OFF-PRICE: SUCCEEDING INTO SUMMER


THE ANCHOR RECAP: JULY 2023


2023: HOME IMPROVEMENT AT THE HALFWAY POINT

The Placer.ai Nationwide Office Building Index: The office building index
analyzes foot traffic data from 800 office buildings across the country. It only
includes commercial office buildings, and commercial office buildings on the
first floor (like an office building that might include a national coffee chain
on the ground floor). It does NOT include mixed-use buildings that are both
residential and commercial.

Return-to-office mandates continue to be the talk of the town. Earlier this
month, the White House called on federal agencies to “aggressively” implement
on-site work policies – and Google announced a special $99 deal for employees
who choose to stay on campus to avoid their commutes. Even Zoom of all companies
(ahem) jumped on the in-person bandwagon, calling workers back to the office for
the first time since COVID. 

So with summer in full gear, we checked in with our Office Building Index. Did
the signs of accelerated recovery we noted last month persist into July? And
what differences can be observed between cities?


TWO STEPS FORWARD, ONE STEP BACK

On a nationwide level, return-to-office mandates appear to be slowly but surely
moving the needle. Visits to office buildings in July 2023 were 0.8% lower than
they were in June – but still higher than they’ve been during any other month
since the pandemic. At the same time, July office foot traffic remained 37.0%
below 2019 levels, indicating the continued strength of the hybrid model. 




SAN FRANCISCO IN FOR THE YEAR-OVER-YEAR WIN

Regionally, Washington, D.C. continued to lead in overall office recovery, with
the smallest year-over-four-year (Yo4Y) visit gap of any analyzed city – just
22.4% in July 2023. But San Francisco, where return-to-office has been
particularly sluggish, saw the greatest year-over-year (YoY) jump in visits.
While San Francisco office foot traffic dipped slightly in July 2023 compared to
the month before, it remained higher than it’s been at any other time since
COVID. Other cities too – including New York, Denver, Boston, and Chicago – saw
the most office visits in July 2023 that they’ve seen since before the pandemic.




LOOKING AHEAD

But despite continued signs of accelerated recovery, the future still seems to
be hybrid. Indeed, as if we needed additional reasons to bet on the staying
power of hybrid work, WFH Research’s new study showing that fully remote work
harms productivity – but that hybrid arrangements don’t – seems to be a
clincher. The research, which generated plenty of media buzz, showed what we all
know to be true: People communicate better in person and need human interaction
to thrive. But that doesn’t mean they need to be in the office five days a week.
And working from home part of the time can enhance employee satisfaction – while
saving critical time and money.

The study concluded that WFH, in some configuration, is here to stay. And while
the recent push by many companies to get workers back to the office appears to
have led to an increase in office visits, location intelligence continues to
highlight the robustness of the hybrid model. 

For more data-driven real estate insights, visit Placer.ai.

‍


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