Office Usage Maintains Post-Labor Day Bump: Kastle

Office usage numbers seem to be gaining momentum, according to Kastle Systems data.

For the past two weeks, Kastle's Back to Work Barometer, which measures the number of badge swipes in 2,000 buildings across the 10 biggest U.S. cities, has reported occupancy above 50% of pre-pandemic levels, the highest numbers seen since January.

In-person office numbers have been stagnant all year at a bit below half of pre-pandemic levels, Kastle data shows. Office occupancy was expected to spike after Labor Day, and it did increase from 47% to 50%, continuing a years-long trend of in-office work rising during the latter half of September, according to Kastle. 

The shift has come amid the implementation of strict in-office mandates. According to a CBRE survey, 65% of companies are enforcing some sort of in-office policy, and these policies affect 1.7 million Americans, according to a JLL study. 

Last month, Goldman Sachs began cracking down on its five-day in-office policy, which about 65% of employees adhered to six months after the mandate was issued last year.

Amazon CEO Andy Jassy has been vocal about the company's hybrid schedule that went into effect in February, saying during a company meeting, "It's probably not going to work out for you at Amazon" if employees don't come in three days a week. The company is also relocating workers to its biggest hubs in cities such as Nashville, Tennessee; Arlington, Virginia; and Bellevue, Washington.

Placer.ai, which tracks foot traffic in 800 office buildings, reported in its August Nationwide Office Index that while occupancy seems to be improving, with "slow and steady progress" taking place over the summer, the RTO story "is still being written." However, it is expected that with these strict mandates in place, occupancy will continue to rise. 

Strict top-down rulings have already led to an 11.6% increase in office leasing in Q2, according to JLL data reported by Bloomberg. This was the biggest quarterly jump since Q2 2021. 

Return-to-office mandates are the reason 10% of Americans are considering selling their homes and moving, according to a survey by Redfin, which requires two days a week in the office for employees living within a 20-mile radius of one. Since employers are putting their foot down about attendance, some people who moved to embrace remote work have to rearrange their plans.