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US’ San Francisco, New York to have emptiest office space by 2033: Report

LIC
Bloomberg |
Jun 02, 2023 08:29 AM IST

By contrast cities in Asia, such as Shenzhen, Ho Chi Minh City and Mumbai will be the least empty, the research showed.

San Francisco, New York and Los Angeles top the list of major global cities that will have the most empty office space by 2033, according to a report from Savills Plc.

US cities will have the greatest excess of office space, according to an analysis by the real estate firm.(iStock)

US cities will have the greatest excess of office space, according to an analysis by the real estate firm.(iStock)

US cities will have the greatest excess of office space, according to an analysis by the real estate firm, which included projected economic, demographics and development pipelines as well as current working habits. By contrast cities in Asia, such as Shenzhen, Ho Chi Minh City and Mumbai will be the least empty, the research showed.

The research offers more grim tidings for US downtowns, already reeling from the aftershocks of a pandemic that turned millions of Americans into remote workers.

“This isn’t just about offices just becoming empty due to some cities seeing lower return to work levels post pandemic,” says Savills World Research associate Kelcie Sellers. “It’s about how long term economic, demographic and development trends interact with working patterns.”

As a result, developers are looking to find other uses for corporate office spaces. “Regardless of the end-use of the repurposed office,” Savills director Eri Mitsostergiou said. “Cities becoming more mixed-use across the world will provide opportunities for repositioning and revitalization.”

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