As companies across the United States report increased office attendance, California remains an outlier, with attendance rates still significantly below pre-pandemic levels. According to a recent survey by real estate services firm CBRE, 72% of companies nationwide have met their attendance goals, up from 61% last year. However, California’s office attendance lags behind, particularly in Los Angeles and San Francisco, where attendance is 48.3% and 41.8%, respectively.
The survey also found that companies are increasingly enforcing attendance policies, with 69% of firms now monitoring office attendance, up from 45% in 2024. Despite these efforts, California’s tech and entertainment industries, which dominate the Los Angeles and San Francisco markets, continue to favor flexible work arrangements due to the nature of their work and lengthy commutes.
Mark Ein, executive chair of Kastle Systems, which tracks office attendance through key-card swipes, noted that long commutes in Los Angeles contribute to the region’s lower office attendance. He said, “It’s just harder to get to the office.” The data shows that while California’s attendance is above the pandemic lows, it still trails cities like New York and Chicago, and is far behind Texas cities, which boast more than 60% attendance.
The trend of hybrid work remains strong, with companies wanting employees in the office an average of 3.2 days per week, while actual attendance is close at 2.9 days. Smaller companies report better alignment between expected and actual attendance compared to larger firms, which face more challenges in enforcing policies.
The commercial real estate industry is feeling the impact of lower attendance rates, with downtown Los Angeles facing high vacancies and potential devaluation of office buildings. A report by BAE Urban Economics suggests converting some office spaces into housing to address the city’s housing shortage.
As companies continue to adapt to post-pandemic work patterns, the focus is on improving workplace experiences and maintaining or expanding office spaces. CBRE’s survey indicates that 67% of managers plan to keep or expand their offices in the next three years, offering hope for struggling landlords.
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