Feb 8, 2023 - Economy & Business

Office occupancy dips back below 50%

Data: Kastle; Chart: Axios Visuals
Data: Kastle; Chart: Axios Visuals

Office occupancy fell by nearly five points after ice storms in Texas kept workers at home, per Kastle swipe data for the week ending Feb. 1.

Why it matters: The drop comes just one week after office occupancy hit a post-pandemic high — crossing the 50% threshold — and underscores how sensitive the workplace has become to weather events.

  • "The impact of severe weather events is more pronounced as the hybrid workweek trend takes hold," Kastle said in its weekly note.

By the numbers: Office occupancy in Dallas and Austin dropped by more than 23 and 25 points, to 30.3% and 42.2%, respectively.

What to watch: With office occupancy stagnating, there are increasing signs of distress in the commercial real estate space.

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