New research shows that companies mandating four or more days of in-office work are using more office space than before the pandemic, while those with hybrid policies continue to downsize. The study, conducted by researchers from NYU, UNC, and Columbia, found that companies requiring just one in-office day per week saw office demand drop by 41%, while those with a four- or five-day policy actually increased their space usage by 1%.

The research highlights a direct link between return-to-office (RTO) policies and office space demand, with each additional in-office day reducing office value declines by 7%. Despite more companies enforcing RTO policies—over 80% of CEOs aim to bring employees back full-time within three years—overall leasing activity remains 10% below pre-pandemic levels.

Companies renewing leases are prioritizing high-end, amenity-rich Class-A office spaces, following the flight-to-quality trend. These properties have held their value better than lower-quality buildings, with some even seeing rent increases. As hybrid work reshapes the office market, firms enforcing more in-office days may help slow the decline in office demand.