Posted on 05/26/2023 6:13:22 AM PDT by Twotone
Working from home is killing office buildings’ worth.
As remote and hybrid work prove to be enduring trends, researchers are predicting grim fates for the future value of New York City’s commercial workplaces.
New York University and Columbia University researchers have updated a 2022 study to reflect new findings that offices will be even more impacted by remote work than they previously calculated.
“We now estimate a more persistent work-from-home regime, which has more of an impairment of office values even in the long run,” Arpit Gupta, co-author of the study, “Work From Home and the Office Real Estate Apocalypse,” told the Real Deal of the revised projection.
The revision comes as post-pandemic rates of workers returning to the office appear to have plateaued around 50%, much lower than many expected.
While last year, in its initial publication, the paper estimated that NYC’s office stock would lose 28% of its pre-pandemic value by 2029, an update this month has significantly upped that number to 44%.
(Excerpt) Read more at nypost.com ...
Kind of hard to get people to want to come into the office when NY City is doing its best to become the San Francisco of the East. Give the workers the NY City of Rudy/Bloomberg and many more would come back (although it would still be unlikely to fully recover).
There is a real solution to this problem, NYC has a problem housing illegal immigrants, it wouldn’t take much to move them into all the vacant office space, problem solved.
Beat me to it...
With the formerly astronomical rents now born by the taxpayers of NYC and the United States, who will just put it on the tab to be settled by the international monetary order.
These cities no longer function as a center of civilization but instead are urban reservations, open-air prisons, insane asylums, and laboratories for experiments.
Who could not see this coming?
This explains the flood of “how remote work destroys your career” and other pro return to office articles, they are really about keeping office occupancy high.
“it wouldn’t take much to move them into all the vacant office space,”
Just converting the plumbing would be a nightmare. The buildings were not designed to handle such a load.
Beware REITs!
No Bail Outs for Commercial Real Estate!
Most of these people are coming from places where indoor plumbing might not exist, so what little that does in these buildings would be a plus. /s.
Time to encircle these urban reservations with fencing. Saw some really lethal barriers from Johannesburg, SA.
COVID proved to be a Black Swan event for traditional office work. People were forced to work from home and they didn’t miss the commute or the abusive managers.
Business owners noted the increases in productivity, the absence of worker’s comp claims, the absence of workplace lawsuits, and the possibility of reducing the facilities bill and sending all of that money to the bottom line.
In other news the buggy whip industry collapsed a hundred years ago.
Anyone who thought workers would ever need to return to urban offices after working from home for two weeks -- let alone two YEARS -- is a moron.
And part of keeping office occupancy, is related to the economic impact of the office workers. These office workers support many businesses in cities, when they go out to lunch, and go shopping in various retail businesses. If they aren’t in the office, they don’t spend any money in the city.
Just about anybody who has any leverage is not going back to the office.
Ever.
Thank you Democrats and Authoritarians for FORCING us to learn that its not necessary to go to the office. Ultimately, your blue hellholes are going to suffer because of it.
I work from home
I absolutely love it. Sleep in longer
No gas or tolls. Extra 2 hours a day
Make dinner. Take a nap. Do laundry.
“These cities no longer function as a center of civilization”...
and now are the HQ of the enemies of civilization.
You forgot the best part.
No diversity.
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