Real Estate Expert Richard Stockton with Ashford, Inc. says even the hybrid model cuts down on needed office space. "A hybrid situation [part remote, part in the office] is pretty dramatically lowering demand for office space. That, in turn, will lead to higher vacancies and lower rent over time - which will ultimately have an impact on that real estate!"
He says groups are already planning to repurpose office buildings into retail, hotel and condo space. But Stockton says the housing market is different. "People are spending more time at home. They want bigger homes, nicer homes, and some want to move to a different location. The is actually INCREASING demand!" Stockton does say the increase in interest may be slowed by rising interest rates.
Today's Workforce is So Much Different than it was Pre-Covid
He says it's similar to what happened when buying online became popular and local retailers suffered. "Now we're seeing an Office Apocalypse which is really the same thing! It's leaving office buildings that need to be re-purposed into something else."
remote working means needing less office space