The U.S. office sector, still adjusting to post-pandemic shifts in occupancy, pricing, tenant preferences and usage amid persistently elevated remote work, may also be confronting deeper structural headwinds. These forces act directly on a core driver of demand: office-using employment.
Generative artificial intelligence (AI) has evolved into a robust enterprise platform in less than three years. Massive investment in models, chips and data centers suggests firms view AI as a durable productivity tool rather than a passing cycle. Early labor market evidence indicates AI-exposed industries are shifting hiring away from entry-level roles that traditionally feed the office workforce.
Meanwhile, the labor supply pipeline appears to be weakening. Standardized test scores show declining academic proficiency, while grade inflation has reduced differentiation across students. AI tools are now widely used for schoolwork, raising questions about skill development and credential
