Office occupancy dips back below 50%

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.