Shift in Work Dynamics Post-Pandemic

For the first time since the COVID-19 pandemic transformed work environments five years ago, more than half of the Fortune 100 companies have transitioned their employees back to full-time office attendance. According to a report by real estate firm Jones Lang LaSalle Inc., this significant shift marks a departure from the hybrid work models that became prevalent during the pandemic.

Decline in Hybrid Work Models

Two years ago, 78% of the largest US companies by revenue offered hybrid work schedules. However, this number has now decreased to just 41%. In contrast, the proportion of Fortune 100 firms requiring full-time office presence has surged from 5% to 54%. This trend indicates a growing preference for in-office work among major corporations.

Impact on Commercial Real Estate

The return to office work is reshaping the commercial real estate landscape. Office attendance in April and May increased by 1.3% compared to the same period last year. High-demand buildings are achieving record rental prices, with new constructions asking for $92.38 per square foot, the highest ever recorded. Trophy buildings in cities like Miami, New York City, and San Francisco are particularly sought after.

Challenges and Adjustments in Office Space

Despite the demand for premium office spaces, vacancies remain above 22%, prompting developers to remove older buildings from the market. The national office inventory decreased by 700,000 square feet last quarter due to demolitions and conversions into residential, industrial, or mixed-use developments.

Corporate Policies on In-Office Attendance

Among the top ten Fortune 100 companies, seven now require employees to be present at least four days a week, while three demand full-time attendance. The average in-office requirement increased from 2.6 days per week in 2023 to 3.8 days in 2025. Companies like Amazon and JPMorgan Chase have already implemented or announced plans to end hybrid work options.

Employee Relocation and Exit Offers

Starbucks has mandated corporate employees to work four days a week in-office starting September 29. Remote managers must relocate to Seattle or Toronto within a year or accept a one-time cash exit offer. This reflects a broader trend of companies reasserting control over work locations.

Conclusion: The End of Hybrid Dominance

The era of hybrid work as the dominant model appears to be concluding as companies tighten expectations and call employees back to offices. This shift underscores a renewed emphasis on traditional work environments as businesses adapt to post-pandemic realities.