Looking back to one year ago, we were all in a vastly different place – at least mentally. Juggling kids at home, adapting to remote work, and attending more Zoom meetings in a week than we had in our whole lives was a game-changer. But now that we have mastered that (or at least learned to sort of survive it!), vaccinations are here, many schools are re-opening and some workplaces are inviting employees to return in-person. This week we wanted to provide a little perspective on Silicon Valley office-vacancy rates, 5 big name companies that are returning to the office, 5 that are not - and what all of this could mean for you.
THIS JUST IN
Just 2 days ago, Bloomberg reported that “Silicon Valley has the lowest office vacancy rate in the U.S., even as technology companies embrace remote work.” The so-called ‘capital of the technology industry’ entered the pandemic with little available office space – and not much has changed. John Gates, Chief Executive Officer of Americas Markets for JLL, has stated that “It suggests the tech companies plan to continue to hire and, one way or another, have a pretty high percentage of their population back in the building.”
This trend has not held true in Washington DC, Miami, Seattle, Los Angeles and San Francisco – metros which have experienced increased office vacancy over the last 12 months. Notably, New York has reached a 30-year high in available office space, likely linked to marketed rents as high as $82.30 per square foot (San Francisco and Silicon Valley are $82.16 and $60.57 respectively).
WHO’S BACK & WHO’S NOT
Virtually every enterprise large and small has a different perspective on what a ‘return to normalcy’ looks like. Google is opening some of its physical locations in late April, while Twitter made headlines when they shifted to a permanent remote work policy back in October (a plan that actually been in the works for two years!). Commercial real estate publication Propmodo just revealed this list of ‘Five Companies Returning to the Office (and Five That Aren’t)’, and here is the quick recap:
The nation’s largest enterprises planning to welcome back their full workforce later this year are:
#1: Goldman Sachs
#2: Amazon
#3: Apple
#4: Ernst & Young
#5: Facebook
These companies have announced a lack of any steady, expected office presence in the future as part of a post-pandemic culture flip:
#1: Ford
#2: Twitter
#3: Slack
#4: Salesforce
#5: Target
These lists are just a minute snapshot of the workplace announcements that are emerging daily as COVID case rates stabilize and vaccination rates in our county rise. Nationwide trends are more diverse as some states are seeing surges and face a more uncertain short-term future with regards to re-opening.
WHAT YOUR FUTURE HOLDS
Perhaps the greatest silver lining of the pandemic is the chance to not only re-imagine work and life balance, but to actualize your vision of it. The Harvard Business Review has touted that "in many professions, it’s likely you’ll have far more freedom moving forward to shape, and maybe even control, the terms by which you’ll work.” Moreover, “thanks to the greater flexibility and opportunities enabled by the crisis, far more professionals may have the opportunity to craft work and careers they truly enjoy.”
The message that what you do and how you do it is more important than your location is actually becoming a value proposition for more and more employees and employers alike. The projected workplace trend is likely to become more of a hybrid model of working on location and at home for many, many companies. Mixed with that are individual preferences about a desire for connectivity, a need for physical separation from work and home life and for some a need to make up for lost (and greatly missed!) face time.
Whether you plan to work from home for the long haul or not, the reality is that there is no place like it. As you reconsider your own career, your own long-term life goals and work-life balance, please do not hesitate to reach out if that means a change in your vision of home. Whether home is where you work, where you play or both – this is a pivotal time to make it exactly what & where you want it to be.
All my best,
Mark
Resources Used
Silicon Valley Has the Lowest Office-Vacancy Rate in U.S.
Five Companies Returning to the Office (and Five That Aren’t)
Reshaping Your Career in the Wake of the Pandemic
Americans Might Never Come Back To The Office, And Twitter Is Leading The Charge