Office occupancy reportedly hits pandemic high

More employees returning to the office has resulted in office occupancy ticking up to 49% nationwide, a pandemic high.

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DAVE BRIGGS: All right, let's talk RTO now. Offices in US cities are getting busier lately. According to new data from Kastle Systems, offices here in New York City hit nearly 48% occupancy last week, marking a post-pandemic high. That's up nearly four whole points from just two weeks prior. Kastle's 10-city average saw a similar uptick as well, reaching 49% for the nationwide average. That, too, a post-pandemic peak.

But it also bears the question, what level will we ever get back to? It does not appear-- well, let's just dismiss with the notion that we're ever going to get to 100% of pre-pandemic numbers. Those days are gone. Say goodbye, employers. But Rachelle, how high do you think we get? Is 75% the ceiling? I'm not quite sure if we even get there.

RACHELLE AKUFFO: I mean, a lot of employers are still figuring out how to get the employees back in, even though you have the office space. You're seeing some of these commercial rents starting to come down a little bit. Still not encouraging people to come in, though.

And we know that some of the numbers are a little bit skewed, though, in the data because you have cities like Austin, Texas, where they have offices that are 2/3 full. So that's perhaps, when you think of the averages, it's maybe not as rosy as it appears. But I mean, I think they might be lucky if they even get to 75% occupancy as the ceiling.

SEANA SMITH: Yeah, 75% is a huge jump from where we are today. You have to think that we would pretty much be back at this point, just in terms of the people who do plan to return to work, the companies that do plan to make it mandatory. Of course, we have heard more and more announcements come out over the last couple of months.

I don't know how much more headway we are going to make from here. We're still below 50%. I think we're going to get above that 50% number. I'm not so sure that we're going to actually push above 60%. When you take a look, though-- Dave, I wanted to point this out to you. I know you take the Metro North.

DAVE BRIGGS: I do.

SEANA SMITH: Metro North trains hit 74% of their 2019 average, which is interesting to me. So Metro North, it looks like a lot of people from your neck of the woods are the ones that are coming back into the office. 74%, that jumped out to be-- was much higher than what I was anticipating to see, given these office occupancy numbers.

DAVE BRIGGS: Funny to have you say that because that was the first number that jumped out to me. I live in an entirely commuter town. All of them commute to New York City. How is that number so high if New York City is nearly 30 points below it? I mean, that is a discrepancy that I cannot account for.

But also based on that, interesting that it reveals Wednesday is the most full day, then Tuesday, and then Monday. But easily Wednesday is the winner in terms of the Metro North train commute. But ultimately, as we move forward, if we have a recession and then employers have a bit more power, Rachelle, maybe that is the thing that ticks that number up. Short of that, I don't see it could ever even get near 60% again.

RACHELLE AKUFFO: It's true. I mean, if we can get labor force participation back up, you're getting more people back into the offices, not because of a hybrid situation, but because of a recession, because of the actual monetary need for it, perhaps you could see a shift in there. But even then, some people still would rather work from home or have some sort of remote option.

DAVE BRIGGS: They'd rather, but the power dynamic would shift in a recession.

SEANA SMITH: Exactly, yeah.

DAVE BRIGGS: That's what I mean.

SEANA SMITH: We wouldn't really have the upper hand anymore when it comes to the employee.