Wednesday, August 27, 2025

US Companies Join Mass Exodus Out of Cities as Pandemic Spirals Out of Control

As the trend of mass city exodus continues, it appears that companies have now joined all of the Americans migrating in droves into the suburbs and rural communities.

As many city dwellers hightail it out of congested downtown living conditions not only due to out-of-control coronavirus infection rates, but also due to growing social unrest, rising violent crime, and skyrocketing costs of living, an increasing number of US companies have also recently joined the trend. Bloomberg recently reported that as the number of Americans that are able to conduct their work from the comfort of their homes continues to increase, the same companies that employ them have finally decided to make their exit.

In fact, according to one real estate company that operates Regus-branded offices in metro areas around the world, there will likely be a strong increase in demand for suburban offices come the post-pandemic recovery era – much of which is being witnessed already. IWG Plc has noted that deals for office spaces in downtown New York have fallen by 30% since the beginning of the pandemic, while activity in southern Connecticut has surged by 40%. And, it’s not just big firms that are making the transition: IWG has observed the sale of small offices that would accommodate one to two people jump by 19% as more and more Americans want to work closer to home.

The escape from large cities, whether it be people or companies, will likely have a significant impact on metro home prices, and will also slow down the economic recovery for those cities. However, it will be interesting to see if the trend continues even once the pandemic passes – if it passes. According to the latest Johns Hopkins University tally, the daily count of coronavirus cases in the US reached a new record of 122,436 on Friday, and as many health officials warn, the surge in hospitalizations across the US is already beginning to follow suit. Nonetheless, the duration of the now-vacant downtown real estate will largely depend on the government’s handling of the pandemic, or lack thereof.


Information for this briefing was found via Bloomberg and Johns Hopkins University. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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