Push to bring workers back to Downtown offices stirs some resistance
PITTSBURGH (KDKA) -- The vacancy rate in Downtown office space is nearly 20 percent, a national real estate company in Pittsburgh reports.
As KDKA money editor Jon Delano explains, that could change as more local companies want their employees to return to work Downtown.
Dan Adamski, senior managing director in the Pittsburgh office of Jones Lang LaSalle, a real estate firm, is optimistic that Downtown Pittsburgh is turning a corner.
"We've seen the numbers of workers Downtown Pittsburgh almost double. We're still far below the pre-pandemic level, but the trend line is very encouraging," says Adamski.
The national real estate firm says Pittsburgh's Downtown office vacancy rate of 19.8 percent ties San Francisco, but Adamski says our downtown's issues just do not compare to San Francisco, plus more employees are returning to work here.
"Quite a few of the large employers Downtown, if not mandating, are strongly encouraging their employees to come back into the office several days per week, following this upcoming Labor Day," says Adamski.
Companies like PNC, BNY Mellon and Federated Hermes have a variety of different plans to encourage workers to work Downtown.
Highmark is the latest with Friday, Sept. 1 as the date for their new policy that the company says is not a mandate but a flexible way for employees to maximize collaboration Downtown.
One Highmark employee called it "chaotic," telling KDKA-TV, "While the change has undoubtedly caused stressed and anxious employees, leadership continues to send out mixed messaging and employees have no idea what their future holds in this chaotic change, because there are no expectations."
On a company message board, employees accused Highmark of bait and switch, by promoting two years ago that at Highmark you could, "Work From Anywhere."
"Highmark's campaigns lured employees under the promise of a 'sustainable' remote work culture, diverging significantly from the strategies employed by competitors and gaining considerable brand recognition."
In a response, Highmark told KDKA:
"Highmark Health's workplace philosophy continues to evolve. Beginning in April 2023, Highmark Health leaders at the vice president level and above have been on-site three days a week. Highmark Health has now expanded that expectation to all team members who are not designated as off-site."
"This is not a mandate, and flexibility is key. We empower team members to choose days that maximize collaboration and fit best with their schedules."
Again, different companies have different policies, but the goal is the same: to get more people back to the office in downtown Pittsburgh.