U.S. Office Trends Shifting Due to COVID-19, Reports Yardi Matrix

Still too early to say how businesses will weigh the benefits of in-person collaboration against the costs of office space in a post-pandemic world

SANTA BARBARA, Calif., May 28, 2020 – With the industry in wait-and-see mode like much of the rest of the nation, the pandemic’s effects on the labor markets are still only now coming to light and the scope of the downturn has yet to be fully understood according to Yardi Matrix® April commercial office data.

National full-service equivalent listing rates dipped slightly by 0.2% with an average of $37.89 per square foot, a decrease from the same period last year according to the latest Yardi Matrix office report. The largest same-store decreases were in Boston (-13.9%), the Bay Area (-4.7%) and Philadelphia (-3.8%).

“Some office trends could come to a screeching halt due to the pandemic. The movement to open-office floor plans that has occurred over the past few decades is now inconsistent with the concept of social distancing,” states the report.

While every sector registered losses, jobs classified as office-using were three of the four least hit sectors on a month-over-month basis. Financial activities (-3.0%), information (-8.8%) and professional and business services (-9.9%) saw losses smaller than all other sectors of the economy, except for government (-4.3%).

Download the full Yardi Matrix May office report.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.