Hello, Memo readers!
The troubles facing the future of commercial office spaces might stick around for a little longer.
U.S. office vacancy rates could reach a peak of 24% in 2026, as remote-work trends continue to challenge whether office space is a strict need for many companies, according to a new Moody’s report. Office sector vacancy hit 19.8% last quarter, a new record-high.
As of last year, more than one-third of workers whose jobs can be done remotely are still choosing to work from home all of the time, Pew Research Center found.
This has spelled trouble for the U.S. office and commercial property market, the largest in the world. Prices in the sector have plunged nearly 11% since March 2022, when the Federal Reserve began hiking interest rates — erasing gains from the preceding two years and deepening industry-wide woes.
But many of these shifts are still fresh. Moody’s said office vacancies are expected to reach a new equilibrium over the next decade, as the real estate market adapts to the new conditions. Read more about the prediction here.
One big number: $5.3 billion
Amount Berkshire Hathaway CEO Warren Buffett is donating in his company’s stock to charity
The 93-year-old billionaire investor remains steadfast in his pledge to donate 99% of his remaining wealth after his death.
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Send questions, comments, and office decorations (for both home and onsite setups) to talk@qz.com. This edition of The Memo was written by Rocio Fabbro and Morgan Haefner.