06/26/23

🏢 The effects of COVID-induced WFH-policies will be felt for a long time to come

Economic analysis firm Capital Economics is out with a new report stating that office values will not regain their pre-pandemic peak prices until well into 2040. Fortune’s write-up provides further details. For example, 56% of surveyed firms have adopted a hybrid work model, and key swipes (an indicator of an office’s utilization) are down 50% from early 2020 levels. As much as this hits commercial real estate investors, it has trickle-on effects on many other infrastructural pieces – from restaurants to commuter traffic. Ever more reasons to rethink urban and suburban living in a new world.