In the United States, office real estate is the victim of Friday

This Building Scares Brooklynites So Much They Named It “Sauron” After the Villain Lord of the Rings, It must be said that this black steel monolith, 325 meters high and 93 floors tall, stands out in the landscape. The Brooklyn Tower is the only giant skyscraper in New York that is not located on the island of Manhattan. This scares not only residents, but also developers. It is scheduled to be auctioned on June 10 after one of them defaulted on loan repayments.

It is not the only building in trouble since the end of the COVID-19 crisis. US office real estate is particularly affected. According to the latest report from Moody’s rating agency, the rate of vacant, unrented space in the United States reached nearly 20% in the first quarter of 2024. Unheard of in over thirty years. This is surprising in a country with a thriving economy that continues to recruit with all its might. In the month of March alone, about 303,000 new jobs were created in the country.

We have to organize this chaos

The first logical explanation for this real estate breakdown lies in the level of interest rates. These impact real estate lending and rent levels. But the main reason lies elsewhere on Friday. The offices were empty that day. Even if, pushed by their employers, many employees have found their way back into open spaces and meeting rooms, they still miss the last day of the week. According to the Castle Company Barometer, an average of about 60% of employees in the ten largest US cities are on premises. Office real estate is Friday’s victim.

But on Friday this figure drops to 30% (Tuesday is the busiest day). ” this is madnessOn April 4, businessman Barry Diller said on CNBC, But we are moving significantly towards a week that will not necessarily be four days, but where Fridays will be at home. We have to organize this chaos.”, And one way to do this, for the benefit of businesses, is to reduce the size of offices. A silent revolution whose main cause is the absence of unemployment, but which has every possibility of taking root not only in the United States, but in society as a whole.

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