{"id":159747,"date":"2023-09-30T12:10:00","date_gmt":"2023-09-30T18:10:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=159747"},"modified":"2023-10-06T08:40:06","modified_gmt":"2023-10-06T14:40:06","slug":"the-real-world-impacts-on-remote-work-and-what-it-did-for-investors","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors","title":{"rendered":"The Impacts of Remote Work\u2014And How It&#8217;s Turned Out For Investors"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">We\u2019ve all heard the old adage \u201clocation, location, location,\u201d and many consider it the most important piece of criteria that applies to real estate investment. Whether you\u2019re buying a new primary residence, a rental property out of state, or a large apartment complex, the location of that property is a variable that should carry a lot of weight in your decision to move forward with the investment.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Well, fast-forward to 2023, and this principle is being challenged in a big way due to one very dramatic shift in American culture: the trend of remote work.<\/span><\/p>\n\n\n\n\n\n\n  <div class=\"lg:block\" x-data=\"{ ad_block_block_651dd29f92197: popAds(1) }\">\n      <template x-for=\"ad in ad_block_block_651dd29f92197\">\n        <a\n          :href=\"ad.linkURL\"\n          class=\"no-underline text-black\"\n          x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors', ad.sponsor, ad.title, ad.id, 'blockAdClicked', 'blockAd', '')\"\n          target=\"_blank\">\n          <div\n            class=\"py-4 border-b flex flex-col flex-nowrap text-sm border-t px-0 rounded-none\"\n            x-init=\"\n              analytics.track('blockAdLoaded', {\n                referrer: 'https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors',\n                sponsor: ad.sponsor,\n                ad_title: ad.title,\n                ad_page_location: ''\n              })\n            \"\n            x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors', ad.sponsor, ad.title, ad.id, 'blockAdViewed', 'blockAd', '')\">\n            <div><span class=\"text-xs text-slate-light block bg-slate-50 p-1 inline-block rounded-md\">Sponsored<\/span><\/div>\n            <div class=\"flex items-center text-sm space-x-4\">\n                <img :src=\"ad.imageURL\" :alt=\"ad.imageAlt\" class=\"h-10 w-10 object-cover rounded-full\">\n\n                <div clas=\"text-sm\">\n                    <span class=\"font-bold block\" x-text=\"ad.sponsor\"><\/span>\n                    <span class=\"text-slate\/80\" x-text=\"ad.description\"><\/span>\n                <\/div>\n            <\/div>\n\n            <div>\n                <span class=\"font-bold\" x-text=\"ad.title\"><\/span>\n                <p class=\"mt-2 text-slate\/80\" x-text=\"ad.body\"><\/p>\n                <span class=\"mt-2 text-themeBlue block mt-2 underline\" x-text=\"ad.linkTitle\"><\/span>\n            <\/div>\n          <\/div>\n        <\/a>\n      <\/template>\n  <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Has the Work Landscape Changed?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Prior to the pandemic, we crammed thousands of employees into cubicles on corporate campuses, which required those employees who worked at that campus to live near the office.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">That corporate environment has changed in a big way. Even with the pandemic years behind us, many businesses are allowing their employees to still work remotely. According to&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Forbes<\/span><\/em><span data-preserver-spaces=\"true\">, as of 2023,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/advisor\/business\/remote-work-statistics\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">12.7% of full-time employees are working from home, and 28.2% are working a hybrid model.<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">There have been challenges for employers around this shift, particularly around ensuring that their employees who work from home are equipped with all the tools necessary to do their jobs. Ideally, if you have an ergonomic chair, two monitors, a keyboard, a mouse, and a headset in the office, you should be offered those same amenities at home.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Additionally, performance metrics such as production and quality need to be monitored closely, as a remote working employee is exposed to countless distractions throughout the day, which, in theory, could negatively impact their job performance.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Despite these challenges, employers are doing what they can to offer remote work when it is feasible for their business, and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewresearch.org\/short-reads\/2023\/03\/30\/about-a-third-of-us-workers-who-can-work-from-home-do-so-all-the-time\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">about a third of U.S. workers who can work from home now do so all the time<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Employee Impact<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Nowadays, with&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/advisor\/business\/remote-work-statistics\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">16% of companies able to operate fully remotely,<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;employees who work for one of these corporations can take advantage of this opportunity\u2014no longer bound to live in a submarket within a 20-mile radius of their office.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This has caused many workers to rethink their living arrangements because as long as they have a Wi-Fi connection and a comfortable chair, they can technically work from anywhere in the world.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">From a practical standpoint, working from home creates a better employee experience overall. Remote workers spend less time in their cars commuting every day and spend less money on gas every week. This frees up time for extracurricular activities, hobbies, and time with family.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Unsurprisingly,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.apollotechnical.com\/statistics-on-remote-workers\/#:~:text=with%20new%20opportunities.-,Are%20Remote%20Workers%20Happier%3F,in%20an%20onsite%20office%20environment.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">remote workers report being happy 22% more than workers who always work in an onsite office environment<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Home Office<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">A few years ago, before the COVID-19 pandemic, home offices were just a bonus feature in a real estate listing. Maybe there was an extra bedroom that the staging company didn\u2019t know what to do with, so they threw a desk in there and called it an office. Or maybe the listing agent needed some creative buzzwords for their listing, so they advertised the home as having an office.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The point is, home offices have existed for a while, but in reality, they weren\u2019t used by many people other than the work-from-home entrepreneur.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In 2023, the home office has become a staple in most real estate listings. Many house flippers and real estate developers are actually adding home offices as a feature in their homes, and these offices are being outfitted with built-in desks, bookshelves, and custom lighting.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Adding an office to your home might not technically increase your property value from an appraisal standpoint, but it will certainly make your home more desirable to prospective buyers.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em><span data-preserver-spaces=\"true\">Related:&nbsp;<\/span><\/em><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/increase-home-value\" target=\"_blank\" rel=\"noopener\"><strong><em><span data-preserver-spaces=\"true\">11 Ways To Increase the Value of Your Home or Investment Property<\/span><\/em><\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Real Estate Market Impact<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Remote work has had an impact on almost every real estate sector, but the largest impacts are seen in both suburban neighborhoods and commercial real estate.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Suburban neighborhoods<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In the case of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-suburbs-have-been-revived-but-will-they-stay-hot\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">suburban neighborhoods<\/span><\/a><span data-preserver-spaces=\"true\">, remote work has given employees the freedom to live in areas that are quieter and more affordable. This&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nber.org\/system\/files\/working_papers\/w30662\/w30662.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">has increased suburban rents and house prices relative to urban locations<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This is a valuable insight for real estate investors, but it is possible that these increases in rents and prices are temporary. While it might be exciting and trendy to live in a suburban neighborhood today, there has always been a draw to living closer to the city center (in most major markets). Out of convenience and quality of life, that draw to live in the city will always remain, making urban market investments more likely to have higher appreciation rates compared to investments in suburban markets.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Commercial real estate<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/its-official-commercial-real-estate-is-collapsing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Commercial real estate<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is seeing the most drastic impacts right now, particularly in the office sector. As of the first quarter of 2023,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.statista.com\/statistics\/194054\/us-office-vacancy-rate-forecasts-from-2010\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">office vacancy rates hovered around 16%<\/span><\/a><span data-preserver-spaces=\"true\">, compared to an 11% vacancy rate prior to the pandemic.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">There is simply too much office inventory available for rent and not enough demand due to the new work-from-home posture that many companies have adopted.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Cities like Los Angeles are impacted with even higher vacancies, which&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.trepp.com\/trepptalk\/los-angeles-office-vacancy-rate-reaches-historic-high-#:~:text=Los%20Angeles%20Office%20Vacancy%20Rate%20Reaches%20Historic%20High%20of%2022.5%20Percent,-Share%20This%20Article&amp;text=(The%20analysis%20below%20comes%20from,commercial%20mortgage%2Dbacked%20securities%20markets.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">reached a historic high of 22.5%<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the first quarter, representing an increase from 20.3% a year ago.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With large employers realizing that there is no need to occupy millions of square feet of office space, they can increase their cash flow by eliminating that massive rent expense while also improving employee satisfaction. This has created a painful scenario for investors of large office buildings around the world.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2024 and Beyond<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">As people continue to embrace the freedom to work from anywhere they want, suburban real estate markets may continue to boom, home offices will become a nonnegotiable option in residential properties, and owners of large office buildings will be faced with challenging decisions on what to do with these large, partially vacant assets.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This shift in the market may present real estate investment opportunities for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-analyze-a-market-for-short-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term rental investors<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;who target trendy markets that would be considered desirable for the digital nomads who have surfaced as a result of this work-from-home freedom.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Additional opportunities also lie ahead for more sophisticated investors who have the experience and capital to take on the challenge of developing office properties into more desirable asset classes, like apartments.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em><span data-preserver-spaces=\"true\">Related:&nbsp;<\/span><\/em><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/with-commercial-real-estate-crashing-these-could-be-your-next-big-opportunity\" target=\"_blank\" rel=\"noopener\"><strong><em><span data-preserver-spaces=\"true\">As the Commercial Market Falls Apart, These Three Assets Could Be Your Next Big Opportunity<\/span><\/em><\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">How do you plan to capitalize on the work-from-home movement in your real estate investing journey?<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_f0fb282c97a61f6075aa2864b41a640a\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_0920b51a1cb516f8499600dcf85ce8e6\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_240cb8c76e75878fb71792a7bb9194ca class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex 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class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/the-real-world-impacts-on-remote-work-and-what-it-did-for-investors&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Remote work changed real estate. For investors, it depended on what side of the coin you were on. These are the real world impacts of remote work.<\/p>\n","protected":false},"author":613703,"featured_media":159750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4433],"tags":[],"class_list":["post-159747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/159747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613703"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=159747"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/159747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/159750"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=159747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=159747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=159747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}