Real Estate

Work From Home Impact on Commercial Real Estate

The growth of work from home opportunities is changing the way many businesses operate. Businesses that used to lease or rent office space are now reconsidering their use of this space, and a recent study by McKinsey & Company found that two-thirds of employees were as productive as those who worked from the office. Many companies are also considering implementing hybrid work arrangements where employees split their time between the office and working from home.

One study found that more than 63% of employees preferred working from home over a traditional office environment, and nearly 30 percent of these employees plan to continue working from home once the epidemic is over. Several shutdowns forced 88% of organizations to adopt remote work by 2020, according to the study. To determine whether remote work is on the rise, 88% of these organizations surveyed 1,000 workers – including those who work at home – and those who worked in traditional offices. The survey also uncovered workplace concerns and desires related to office real estate.

The increase in WFH has impacted other sectors, including financial services and the Real Estate industry. Work from home encourages workers to work outside of city centers, so many governments have enacted schemes to encourage first-time home buyers to masstamilan consider a new home instead. As this trend continues, the residential real estate market will shift as well. However, the future of commercial real estate will remain a mix of home-based and office-based workspaces.

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