Return-to-work mandates seem to be increasing, with many government and private sector workers directed to return to the office full-time. But despite the ongoing RTO headlines, Placer.ai’s February 2025 Office Index reported nationwide office visits were 36.3% lower than in February 2019.
Additionally, most cities experienced year-over-year declines when it came to office visits.
Digging Beneath the RTO Headlines
So, what’s going on? “While RTO mandates are driving the elements of the recovery, most do include some element of hybrid work,” Placer.ai Senior Vice President of Marketing Ethan Chernofsky told Connect CRE.
In other words, while the headlines tout all organizations who want their employees back in the office, hybrid and remote work are still very much in play. “The current status in cities more impacted by RTO mandates indicates the success of these approaches,” Chernofsky observed. But they also highlight the staying power of hybrid work, making this as likely the most significant ripple from the pandemic.”
Location, Location, Location
February office visits varied, depending on the cities involved.
The report indicated that New York City and Miami are leading the nationwide office recovery, followed by Atlanta, GA, Houston, TX, Washington DC and Dallas, TX. Furthermore, San Francisco outperformed Chicago, “perhaps indicating that RTO mandates in the tech world are beginning to move the needle in the country’s tech capital,” the report pointed out.
Chernofsky explained that the cities overperforming from an RTO perspective operate within a “new normal” paradigm, meaning there might not be an appreciable shift in office visits. However, “other cities lag farther behind in return to office mandates. This offers the potential for a more significant boost to the overall recovery,” Chernofsky said.
He also said that other factors could be at play, including weather and timing of holidays. “The results from February certainly fall within that range of realistic expectations, especially when you consider the impact to cities more affected by inclement weather,” he added.
Should We Be Worried?
Not necessarily. Chernofsky explained that it’s too early to dub the February fluctuation a trend. “For most top cities on this list, we are currently operating in the office new normal,” he said. However, cities that are lagging might see different results, which could impact future office visitation data.
“One potential is a recovery that reaches similar levels as other cities but simply took longer to achieve,” Chernofsky said. “The other is a continuation of this norm that impacts where businesses choose to set up shop in relation to their approach to office visitation.”
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