Why Office Values Might Plummet This Year

Why Office Values Might Plummet This Year // With a many companies attempting to make a return to "business as usual" this summer, many businesses are having to make some hard decisions around the “work from home” policies that became the norm in 2020 and the first half of this year.

Initially, this appeared to be very much an employer-based decision, with companies in charge of making choices around when (or if) employees would head back to the office.

However, as we start to head back into a “new normal” here in the US, we’re starting to see employees having a much bigger impact on this decision than research firms had initially projected, with many office workers now pushing back against a full, or even partial, “return to the office” move.

And this is not a good thing for office property owners, during a time when occupancy rates have dipped even lower than in the Great Financial Crisis, rent growth has turned negative, and concessions like TI allowances and free rent periods are being used widely across the country in a last-ditch effort to preserve valuations.

So, with so much change going on in the office sector, to help make sense of it all, this video will break down where the work-from-home movement stands today, how that’s affecting the office market right now, and the opportunities that might arise from all of this chaos for office investors going forward.

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Research and articles referenced in this video:
https://www.bisnow.com/national/news/office/while-landlords-await-the-deluge-workers-in-a-slow-drip-back-to-the-office-108996
https://www.kastle.com/safety-wellness/getting-america-back-to-work/
https://www.nytimes.com/2020/10/30/nyregion/new-york-city-office-coronavirus.html
https://www.flexjobs.com/blog/post/flexjobs-survey-finds-employees-want-remote-work-post-pandemic/
https://www.hrdive.com/news/survey-1-in-3-remote-workers-would-seek-new-job-if-asked-to-return-to-offi/598201/
https://www.ey.com/en_gl/news/2021/05/more-than-half-of-employees-globally-would-quit-their-jobs-if-not-provided-post-pandemic-flexibility-ey-survey-finds
https://www.usatoday.com/story/tech/2021/03/25/covid-remote-work-office-return-survey-zoom-meeting-fatigue/6989446002/
https://www.cbre.us/research-and-reports/US-Office-Figures-Q1-2021
https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/us-office-marketbeat-reports
https://www.usatoday.com/story/tech/2021/03/25/covid-remote-work-office-return-survey-zoom-meeting-fatigue/6989446002/
https://www.globest.com/2021/05/24/short-term-leases-could-tank-office-valuations/

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