Remote work risks wiping $800 billion from the value of office buildings in major cities, highlighting the potential losses that landlords are facing from post-pandemic changes in employment trends.
Covid-19’s push toward hybrid work has driven the need for office space down with vacancy rates rising, McKinsey Global Institute said Thursday in a report that modeled the impact on valuations by 2030 in nine cities globally.
The estimate for $800 billion in valuation losses represents a 26% decline compared to levels in 2019, with the blow at risk of deepening to as much as 42%, the consultancy firm said.
Read the full story on Bloomberg here.