Kaiser Permanente plans to move 1,200 administrative jobs from its headquarters in Oakland, Calif., to a suburb about 30 miles away, The San Francisco Chronicle reported Feb. 22.
The health system attributes the move of about 10 percent of its Oakland workforce, part of the Northern California regional headquarters, to an office campus in Pleasanton, Calif., to the rise of remote work since the pandemic began. The relocation will occur in 2024.
"Across our organization, we have shifted to a hybrid model that includes a combination of on-site and remote work," Kaiser Permanente said in a statement cited by the Chronicle. "As we continue to support remote and flexible work, our need for physical administrative space is significantly reduced and we are right sizing our campuses."
Kaiser Permanente is the largest private employer in Oakland. The city's office market ended the fourth quarter of 2022 with a vacancy rate of 18.6 percent compared to the overall vacancy rate of 17.3 percent, according to commercial real estate CBRE.