Real Estate

Remote Work to Wipe Out $800 Billion From Office Values, McKinsey Says

  • Office attendance remains 30% below pre-pandemic levels
  • Downward trend for occupancy, rents are set to continue
WATCH: PGIM’s Greg Peters says “cracks” are appearing in commercial real estate.Source: Bloomberg
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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.