Remote work could erase up to $800B in the value of commercial office real estate.
Work from home risks losing $800B from the value of office buildings in major cities, highlighting the potential losses landlords face from post-pandemic changes in employment trends. Covid-19’s push toward hybrid work has depressed the need for office space, and vacancy rates are rising, the McKinsey Global Institute said. The $800B estimate in valuation losses represents a 26% decline compared to 2019 levels, with the blow potentially deepening to as much as 42%, the consultancy firm said. A conservative scenario