As many companies embrace remote and hybrid work, demand for office space has weakened and property values have fallen. The deciding factor is whether the commercial property market sees occupancy rates in office buildings ever returning to pre-pandemic levels. A report from McKinsey Global Institute said that remote work risks wiping $800 billion from the value of office buildings in major cities worldwide by 2030. Related Articles Real Estate | Well over 100 delinquencies jolt downtown San Jose towerWell over 100 delinquencies jolt downtown San Jose tower Real Estate | Big San Jose retail center is bought for $30 million-plusBig San Jose retail center is bought for $30 million-plus Real Estate | Greyhound bus stops are valuable assets. Treasury’s analysis said “codification of work-from-home in future employment agreements, continued increases in office space available for sublet, continued low actual worker occupancy of office space, downsizing of firms’ office space requirements in new leases, continued deterioration in the value of office REIT stocks, and increases in delinquencies and defaults in the office sector” are all signs that office buildings might just be spiraling into oblivion.

Source: CNN December 19, 2023 17:05 UTC