Article by:
Vinjeru Mkandawire
To many people's surprise, offices have largely avoided the calamity affecting shops and restaurants after more than a year of lockdowns. Office owners have been spared any substantial demand shocks, and sale prices in big cities have held up despite lower rents in many places. Delinquencies and distressed sales have been rare.
But there are still dangers. If remote working sticks, office space could become expendable. By one estimate, demand in Europe could drop by 17% over the next decade; in America by 16%. The price per square foot in America could fall by more than half of employees working from home for three days a week. But losses from the pandemic may take years to materialize. For now, corporate tenants are locked into long leases and workers are returning to the office. Read full real estate article here.
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