By james art More than 1 in 5 Americans work from home at least part of the time, according to the U.S. Bureau of Labor Statistics, but when it comes to telecommuting, the Triangle is a popular place to do it.
According to a new New York Times survey, Raleigh is ranked as the second most popular place to work from home, with 25% of its residents working from home. Durham, meanwhile, is the 9th most popular city for working from home, with 20% of its working residents telecommuting.
While both are popular destinations for working from home, this means fewer people are in office buildings. Commercial real estate firms said this is having a big impact on office space valuations.
According to a commercial real estate analysis by Cushman & Wakefield, vacancy in Raleigh-Durham is hovering around 25% in the third quarter of 2024, and the group expects vacancies to rise in 2025 nationwide.
Jim Anthony, who has been in the commercial real estate business for decades, said office space rents are falling because of the shift to working from home.
He told WRAL News the layoff could be permanent.
“We will see a steady reduction of most large companies in terms of their office footprint,” he said. “25% shrinkage is something of a minimum, but 50% is not unusual.”
While some office buildings remain vacant, some buildings, like American Underground, a startup hub and workspace on West Main Street, offer flexibility.
One of those using the space is Eric Johnson, the co-founder of Purpose UX. Johnson told WRAL News he does a mix of remote and in-person employees.
“People are more relaxed,” he said. “They do a better job when they don’t feel pressure to hit the road and get here [I-40] every morning.”
Johnson told WRAL News the added flexibility is especially important for employees with families.
“As someone with kids, it’s a lot easier to be there when I should be there at home,” he said.
Anthony said the Raleigh-Durham job market is still the preferred location for businesses looking to relocate, which he said will help fill commercial properties.