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Could AT&T’s full-time return-to-office boost commercial real estate?

Dallas-based telecom giant is one of the nation’s largest private employers

AT&T's John Stankey; 208 South Akard Street (AT&T, Loopnet, Getty)
AT&T's John Stankey; 208 South Akard Street (AT&T, Loopnet, Getty)

AT&T is shifting its workplace policy with plans to ask most employees to return to the office full-time starting in January. 

The Dallas-based telecom giant’s in-office requirement will affect AT&T Technology Services workers first, with the change rolling out across job sites, and it’s expected to be fully implemented by March, Business Insider reported. The company, led by CEO John Stankey, is one of the nation’s largest private employers, with about 150,000 employees.

The move comes amid broader trends across corporate America, with many employers scaling back their hybrid and remote work policies that had been introduced during the pandemic. 

AT&T joins a growing list of major corporations such as Amazon, which recently mandated the same policy effective Jan. 2, although certain adjustments are being made in some cities due to office space constraints.

AT&T didn’t offer details regarding the change but confirmed that there is adequate office space to accommodate employees in its Dallas headquarters at 208 South Akard Street.

The company has emphasized that its return-to-office policies will vary depending on the team and location, and there is no “universal policy” that applies to all employees. The update represents a continuation of gradual changes that have been underway at AT&T since last year. 

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Managers were required to come to the office at least three days a week starting in July, and workers were encouraged to return to the office in AT&T’s nine major hubs, including Dallas, Atlanta, Los Angeles and Seattle.

AT&T’s move to call its workforce back to the office full time could influence other companies to do the same, and commercial real estate in major urban centers could see a resurgence. 

The office vacancy rate in the Dallas-Fort Worth metroplex stands at about 26 percent. While the amount of empty space in DFW is significant, the region’s office return rate outpaces the nation, according to Avison Young.  

For Dallas, the numbers are even better. In the city’s Central Business District and Uptown neighborhoods, employers are seeing over 90 percent of employees come back to the office in person.

Still, the metro is still recovering. Office vacancy in Dallas and Houston is contributing to an annual loss in potential rental income of $1.62 billion, according to a recent Switch on Business.

— Andrew Terrell

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