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Productivity gains could curb future office demand

Knowledge-oriented firm keep expanding economic output
Tech and AI innovators in San Francisco and elsewhere have developed tools to make knowledge workers much more productive, but further leaps could present a downside risk to future office demand. (Anthony Lindsey/CoStar)
Tech and AI innovators in San Francisco and elsewhere have developed tools to make knowledge workers much more productive, but further leaps could present a downside risk to future office demand. (Anthony Lindsey/CoStar)
CoStar Analytics
February 23, 2026 | 8:09 P.M.

The longstanding relationship between economic expansion and job growth has begun to fray, especially among traditionally office-hungry industries. Should this trend continue, it may well represent another structural headwind to long-term demand for office space.

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News | Productivity gains could curb future office demand