It's a novel use of a metaphoric idiom (with, needless to say, odd syntax).
Happens all the time, though this is the first I've heard this one. Where is this office located?
X is out of pocket normally means that expense has been occurred by X. Who is out of pocket? asks who incurred any expense; Geoff is out of pocket for this claims that Geoff was responsible for paying for this; If you wind up out of pocket, see me about payment is an invitation to submit a voucher for reimbursement. Needless to say, the money is currently unavailable to X.
The metaphor is that money comes out of one's pocket. The odd syntax is to say that the person is out of pocket instead of the money. But it's a fixed phrase and they do get weird.
In the usage cited, X is out of pocket has apparently been reinterpreted, with pocket being metaphorized as X's office rather than X's money -- money (and debt and responsibility) have disappeared entirely from the meaning. And it's X that's unavailable, not X's money.
Very interesting. Thank you.