Office space has been open in Massachusetts since Phase 1 of the commonwealth's reopening plan went into effect on May 25, but office workers and their managers aren't rushing to return. That doesn't mean they never will, just that the uncertainty is still too strong.
During the early days of the pandemic closures, the expectation was that reopening, when it occurred, would be a series of relatively quick steps up, Oxford Properties Group U.S. Head of Office Chris Mundy said on Bisnow's Boston Office Update: Subleasing, Retail and the Evolving Market webinar last week.
Those steps would begin at perhaps 25% of pre-pandemic occupancy and then move up to 50% and 75%, Mundy said.
"Candidly, we were way high," he said. "There's really been caution among the office tenants in coming back."
In Boston, the current total at Oxford Properties' portfolio is about 5% of pre-pandemic occupancy, according to Mundy, who said the Canadian pension fund-owned Oxford saw similar numbers in New York and Washington, D.C. Rent collection for those offices is almost 100%, however, he added.
Uncertainty is the guiding factor in workers staying away, and it is still weighing heavily on forecasts for office owners like Oxford.
"There's a lot of speculation about what the impact of the pandemic will be, but there's a wide range of [possible] outcomes, so it is hard to make long-term decisions," Mundy said.
Office workers who can work at home have adapted to the new reality, and until the coronavirus pandemic is under control, they don't see any reason to work in an office — and their bosses don't either.