Large Bank Supervision Forum eBook

Internal Use Only

Falling Demand for Office Space

Actual Forecast

0.6

18

0.4

15

0.2

12

0.0

9

-0.2

6

Absorption/Stock (Percent, Left Scale) Completions/Stock (Percent, Left Scale) Vacancy Rate (Percent, Right Scale)

-0.4

3

-0.6

0

4Q07 4Q09 4Q11 4Q13 4Q15 4Q17 4Q19 4Q21 4Q23

Source: CoStar. Note: Actual data are as of fourth quarter 2023.

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Most Employees in Big Cities Still Work from Home

60 Austin Houston Dallas Chicago New York Los Angeles Washington D.C. San Jose San Francisco Philadelphia Office Attendance - Percent of Pre-COVID 80 100

40

20

0

Source: Kastle Systems. Note: Office attendance is card swipes of Kastle access controls, averaged weekly through February 14, 2024.