What Owners and Leasing Professionals Need to Know About the Future of Office Occupancy
Artificial Intelligence (AI) is reshaping the modern workplace faster than any technological wave since the Internet. Across every industry, AI is automating tasks, streamlining operations, and redefining how work gets done.
Yet amid all the forecasts of massive job losses, the commercial office market must focus on what truly matters: How will these changes affect office-using employment — the white-collar sectors that occupy most leased space in major U.S. cities.
Today, approximately 163 million Americans are employed, with roughly one-third working in traditional office-using sectors such as law, accounting, finance, insurance, real estate, consulting, and technology.
Over the next decade, studies from McKinsey, Brookings, and the World Economic Forum suggest that 8–15% of total U.S. employment could be structurally affected by AI automation.
However, this does not mean those jobs vanish entirely. Instead, many roles will evolve — requiring human oversight, creativity, and relationship-building — skills that AI cannot replace.
For owners and leasing professionals, this means the market will not collapse; it will reconfigure. Expect 15–25% reductions in average space demand per tenant as hybrid work and automation take hold. Consider too, that new growth from AI, cybersecurity, data analytics, life sciences, and professional training sectors will occur.
The office is not disappearing. It is being redefined.
The Context: What’s Really Changing
The last three years have already triggered a profound reset in office use. The pandemic normalized hybrid work, driving companies to reduce footprints by 20–30%. Now, AI is accelerating the next phase of transformation.
According to McKinsey’s 2024 report “Generative AI and the Future of Work in America,” up to 30% of U.S. work hours could be automated by 2030. But this change will unfold unevenly—task by task, firm by firm—rather than through sudden mass layoffs.
The MIT confirms that data-heavy white-collar jobs—legal research, accounting, compliance, analysis—face the greatest disruption, while judgment-based, creative, and relationship-driven roles remain essential.
Companies will not eliminate entire divisions; they will reshape them.
The result: fewer repetitive roles, more analytical and client-facing staff, and more flexible collaboration space in offices.
Who Occupies Offices Today
| Sector | Share of Office Employment | Typical Space per Employee |
| Legal Services | 12% | 200–275 ft² |
| Accounting / Consulting | 15% | 150–200 ft² |
| Finance & Banking | 18% | 150–225 ft² |
| Insurance | 8% | 125–175 ft² |
| Real Estate & Property Management | 10% | 175–225 ft² |
| Technology / Marketing / Creative | 20% | 125–200 ft² |
These industries form the backbone of Class A and B office occupancy nationwide—and are the same sectors undergoing AI-driven realignment. Each is evolving toward leaner operations but more specialized space.
AI Exposure by Sector: Who’s at Risk
| Sector | Estimated Job Reduction (2030) | Space Impact | Comments |
| Accounting / Bookkeeping | 12–18% | ↓ 20–25% | Reconciliations, audits, and reporting largely automated; Big 4 firms already deploying AI copilots. |
| Legal | 10–15% | ↓ 15–25% | Document review and research automated; paralegal and discovery roles most affected. |
| Finance / Banking | 8–12% | ↓ 15–20% | Back-office and compliance roles trimmed; front-office advisory remains stable. |
| Insurance | 7–10% | ↓ 10–15% | Claims processing and underwriting automated; customer-facing roles persist. |
| Consulting / Marketing | 5–8% | ↓ 10–15% | AI automates data analysis; creative and strategic functions grow. |
| Technology / Data Science | +5–10% | ↑ 10–20% | Expanding AI, cloud, and cybersecurity teams—net job creators. |
Most reductions will occur in lower and middle layers (clerical, entry-level, and analyst roles) while senior professionals remain indispensable for client trust, ethics, and leadership.
Why Firms Still Need Junior People
AI may automate early tasks, but it cannot train future leaders.
A law firm that outsources all document review has no associates to become partners.
An accounting firm without junior auditors has no pipeline for future CPAs.
Every industry still requires a learning ladder — young professionals gaining institutional knowledge, mentorship, and culture through in-person collaboration.
That’s why major employers are reinforcing office expectations:
- Goldman Sachs, JP Morgan, Morgan Stanley: in-office mandates for junior bankers to learn by osmosis.
- Deloitte, EY: hybrid but training-intensive, using AI alongside rotational mentoring.
- Kirkland & Ellis, Latham & Watkins: large urban offices maintained for real-time learning.
Mentorship and collaboration will keep offices full, even in the AI age.
Why In-Office Work Is a Competitive Advantage
AI boosts productivity, but in-person collaboration builds innovation and culture.
Leading firms now view their offices not as overhead, but as strategic assets for:
- Faster onboarding and peer learning
- Stronger team cohesion
- Confidentiality and cybersecurity
- Creativity and innovation
- Client trust and relationship-building
Examples:
- Salesforce: teams in the office 3+ days closed 18% more deals than remote ones.
- Amazon: requires in-office presence for collaboration and invention.
- Bank of America: mandates three days for analysts, five for executives to maintain mentorship continuity.
AI may enable remote work but people still perform best together.
Projected Space Scenarios (2025–2035)
| Scenario | Job Reduction | Space Reduction | Notes |
| Conservative | 5–7% | 10–15% | Slow AI adoption; hybrid stabilizes. |
| Moderate (Base Case) | 10–12% | 15–25% | Steady automation; densification and hybrid flexibility. |
| Aggressive | 15–20% | 25–35% | Rapid AI adoption + hot-desking model. |
Even under aggressive forecasts, office use does not disappear. It evolves into smaller, smarter, more flexible space, focused on collaboration and training.
Who Will Fill Offices Going Forward
While traditional sectors may shrink modestly, others are expanding quickly.
The Southeast and Atlanta in particular are emerging as AI and innovation hubs.
Growth Sectors in Office Demand
| Growth Category | Sample Companies | Market Notes |
| AI & Data Companies | OpenAI, Anthropic, Nvidia, Databricks | AI labs, R&D, ethics teams; strong leasing in tech corridors. |
| Cybersecurity & Cloud Infrastructure | Fortinet, Darktrace, ReliaQuest, CoreWeave | +30% growth expected; secure collaboration floors required. |
| Fintech & Payments | Visa, Fiserv, Global Payments, Stripe | Expanding operations hubs in Atlanta & Charlotte. |
| Life Sciences / Health-Tech | Emory, Duke Health partners, SAS, Red Hat | Lab-office hybrid environments near universities. |
| Education & Professional Training | Corporate retraining, AI certification providers | Upskilling centers, co-working style hubs. |
| Shared Workspaces / PropTech | VTS, Industrious, WeWork 2.0 | Flexible model recovery in secondary markets. |
(Note: sectors like government, public programs, and sustainability will expand more slowly given current political and budget headwinds.)
Key Players Expanding in Atlanta & the Southeast
- Fortinet – 215,000 sf innovation campus in Atlanta
- AIG – 600-job digital AI hub, Brookhaven
- Google – 500,000 sf Midtown campus
- Visa – 123,000 sf Midtown innovation office
- BlackRock – Expanding fintech teams in Atlanta
- Equifax – Collaborative data offices in Alpharetta
- Delta Air Lines – Tech Square “Hangar” innovation center
- Home Depot – AI and analytics labs at HQ
- UPS – Sandy Springs logistics AI expansion
- Oracle – Nashville riverfront headquarters campus
- ReliaQuest – Tampa HQ with cybersecurity labs
- Citadel Securities – 1.3M sf Miami HQ tower
- Wells Fargo / Bank of America / Truist – Charlotte AI and innovation hubs
- Kaseya – Miami-based IT growth hub
- Red Hat / IBM / SAS – Expanding analytics divisions in RTP
These companies are driving the next cycle of leasing activity in the region—combining high-tech operations with training-intensive hybrid workforces.
What This Means for Owners and Leasing Professionals
Short-Term (1–3 Years)
- Expect high sublease inventory and flight-to-quality.
- Focus marketing on tech-enabled Class A buildings.
- Offer plug-and-play and short-term (2–4 year) leases for agility.
Mid-Term (3–7 Years)
- Retrofit older assets for collaboration, sustainability, and amenity-rich experiences.
- Convert excess space into labs, training, or co-working suites.
- Target co-location deals: AI + finance, health + tech, logistics + data.
Long-Term (7–10 Years)
- Demand stabilizes with smaller footprints but higher rent per square foot.
- Offices evolve into brand experience centers—where teams innovate, meet clients, and develop future leaders.
- Landlords who align early with these new occupiers will capture the next wave of growth.
Strategic Opportunities
- Target growth sectors: AI, cybersecurity, fintech, data analytics, health-tech.
- Use AI in leasing: predictive analytics for renewals, tenant prospects, and pricing.
- Partner with universities: Georgia Tech, Emory, Duke, Clemson, and UNC for workforce programs.
- Design smarter space: collaboration zones, tech infrastructure, flexible meeting areas.
- Market community: emphasize that offices create culture, learning, and mentorship.
Final Thoughts: The Future Is Smarter, Not Smaller
AI is not eliminating office work — it’s redefining it.
While total headcount may decline modestly, the importance of physical space as a center for culture, collaboration, and learning will rise.
Commercial real estate is not facing extinction. It is entering a new era of purpose.
The office of the future will be a hub of human innovation, where technology, mentorship, and creativity converge.
Landlords, investors, and leasing professionals who adapt now by targeting the right sectors and redesigning for flexibility will thrive in the years ahead.
The next chapter isn’t about empty buildings.
It’s about smarter buildings, filled with people doing higher-value work.
SOURCES
Acemoglu, D., Autor, D. H., & Johnson, S. (2023, June). Preliminary estimated workforce effects of automation from AI (Policy memo). MIT Shaping Work Initiative. Retrieved from https://shapingwork.mit.edu/wp-content/uploads/2023/07/Policy-Memo-%E2%80%94-Estimated-Workforce-Effects-of-Automation-from-AI-June-2023.pdf Massachusetts Institute of Technology
Ellingrud, K., Sanghvi, S., Dandona, G., Madgavkar, A., Chui, M., White, O., & Hasebe, P. (2023, July 26). Generative AI and the future of work in America. McKinsey Global Institute. Retrieved from https://www.mckinsey.com/mgi/our-research/generative-ai-and-the-future-of-work-in-america McKinsey & Company
Brynjolfsson, E., Li, D., & Raymond, L. (2023). Generative AI at Work (preprint). arXiv. https://doi.org/10.48550/arXiv.2304.11771 arXiv
U.S. Bureau of Labor Statistics. (2025, February). Incorporating AI impacts in BLS employment projections: Occupational case studies. Monthly Labor Review. Retrieved from https://www.bls.gov/opub/ted/2025/ai-impacts-in-bls-employment-projections.htm Bureau of Labor Statistics+1
World Economic Forum. (2025, April). AI jobs: Reflections on International Workers’ Day. Retrieved from https://www.weforum.org/stories/2025/04/ai-jobs-international-workers-day/
CREA United. (n.d.). Today’s offices: smaller but better. Retrieved from https://creaunited.com/todays-offices-smaller-but-better/ MIT Sloan / MIT Shaping Work Initiative. (n.d.). Commercial real estate prepares for the workplace of the future. MIT Sloan Ideas Made to Matter. Retrieved from https://mitsloan.mit.edu/ideas-made-to-matter/commercial-real-estate-preps-workplace-future