Issue32

Welcome back to Collective Bookmarks. This week’s newsletter is a 6 minute read, or the time it takes to find the missing sock in your laundry pile. Collective Bookmarks is sponsored by HQO, the world’s leading workplace experience platform.

In This Week’s Issue:

• Three Things You Should Know
  • Office Tenants Are Renewing Leases, but for Far Less Space
  • Working Remotely Can More Than Halve an Office Employee’s Carbon Footprint
  • Remote work thrives in the biggest and fastest-growing parts of the U.S.
• A Person You Should Know: Matt Young
• Product We’re Into: IDN

Events You Should Attend:

Epoch’s EX Happy Hour in Los Angeles

Books We’re Reading: Out of Office by C. Warzel & H. Petersen

As always, if you have feedback or questions please reach out.

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Three Things You Should Know

From The World of Work and Place

1. Office Tenants Are Renewing Leases, but for Far Less Space

Office lease signings have seen an uptick this year, but the average lease size has decreased, indicating that companies are spending less on office space for the foreseeable future. This shift is attributed to the rise in hybrid work models, allowing employees to work from home more frequently. In Q2, U.S. businesses signed leases for 97.5 million square feet, a significant increase from 57.4 million in Q2 of 2020. However, the average lease size was 3,275 square feet, 19% less than the average between 2015 and 2019. The U.S. office vacancy rate has risen from 9.5% pre-pandemic to 13.2% and is projected to exceed 17% by 2026. This trend is impacting office owners, cities, property values, and the banking system. Large companies like Aon and IBM have reduced their office space, and smaller businesses are following suit. Some companies, like Fluor, are reducing space due to business evolution, while others are influenced by hybrid work policies. Currently, 61% of U.S. companies allow remote work, up from 51% earlier in the year. The number of companies requiring full-time office presence has dropped from 49% to 39%. This trend is expected to continue, with newer companies favoring flexible work models. Even tech firms like Hiya are leasing less space despite workforce growth. While some businesses are expanding their space, many, especially law firms, are reducing their footprint, adapting to hybrid work, and eliminating traditional office features.

2. Working Remotely Can More Than Halve an Office Employee’s Carbon Footprint

During the COVID pandemic’s peak, about 50% of Americans shifted to remote work, and currently, around 20% continue to work from home part-time. While remote work is believed to be beneficial for health and the environment, its actual sustainability has been debated. A new study analyzed the climate impact of remote work in the U.S., considering factors like commuting, energy use, and IT devices. The research found that remote work could cut an individual’s carbon emissions by over half if they adopt sustainable practices at home. However, the study also revealed that remote workers often drive more during the day and might use more energy at home. Some politicians have claimed that remote work can reduce emissions by 95%, but this study refutes that, emphasizing that the actual reduction depends on sustainable living practices. The research also suggests that making office buildings more energy-efficient could make in-office work as green as remote work. While the study focused on the U.S., its findings are believed to be applicable to other industrialized nations. The main conclusion is that while remote work can contribute to a sustainable future, it’s not a complete solution on its own.

3. Remote work thrives in the biggest and fastest-growing parts of the U.S.

In the U.S., 15% of workers operated from home last year, with higher percentages in major cities, especially on the East and West coasts. Boulder, Colorado, led with 32% of its workforce working remotely, followed closely by Denver. Tech hubs like San Francisco, San Jose, and Austin, Texas, also had significant remote work percentages. Over 25% of Washington, D.C.’s workforce worked from home, ranking it 6th among cities. Conversely, Mississippi had the lowest remote work percentage at 5.5%, with the Southeast generally below the national average. However, every state has seen an increase in remote workers since 2019. The national remote work percentage dropped by less than 3 points between 2021 and 2022. Large cities with dense office spaces are where the work-from-home trend is most prevalent. Despite efforts by major employers, including big banks and the federal government, to bring employees back to offices, success has been limited. The likely solution in these cities is the transformation of office buildings into residential spaces and business districts into mixed-use areas, a process already in progress in several cities.

HqO, ranked No. 75 on the Inc. 5000 list, is transforming how people connect with each other and the places they work. The HqO Workplace Experience Platform and App makes it easy for companies and commercial property teams to create modern workplaces through world-class amenities and services that allow people to thrive and produce the best results. Active in over 250 million square feet in 25 countries, 57% of the Fortune 100 rely on HqO to enhance their workplace experiences, improve employee satisfaction, and drive operational excellence.

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