How Working Remotely Will Impact the Future of Real Estate

Question

Hi all BP members,

Just an out of thought question. How Working Remotely Will Impact the Future of Real Estate? Such as Commerical Property or Office for Lease Commercial building.

Please feel free to comment on here. Just out of thought question.

Thank you

Daniel Hyman · Answer

IMHO it depends on the industry. Tech companies and financial service industries are one thing....Doctors offices and Pizza places are another...

Although the other day at my doctor's office, I saw an ad for video conference appointments. Crazy. What's next, an app to get a colonoscopy?

Russell Brazil · Answer

Most effects of this are typically overstated.

The main thing Id say, is a nice home office becoming a real asset on a property.  Id personally pay more money for the same house if it had a bunch of built in office stuff already instead of it being a bare bedroom.

Ronald Rohde · Answer

I think you'll see more macro effects of workers relocating to fast internet, cheaper COL states. I'd much rather fly into Ohio 1-2x a month for meetings but work remotely from Texas!

Marlen Weber · Answer

@Tony Lee while remote careers increasing, commercial properties and offices aren't going anywhere. The majority of the businesses will still need a storefront and those who "work from home" rent out office spaces as well. It is a valid concern and observation but I don't believe it is something that will negatively impact real estate.

Russ B. · Answer

I'm not sure enough people will ever tele-work to cause that much disruption.. at least not compared to other technology related market changes (imagine what self driving trucks are gonna do). The only big exception has been moving work offshore, like the lower end IT jobs. I think most of this change has already happened though.

That said, having a nice home office would definitely be a selling point in some locations - especially in more upscale areas that are close to an airport.

The other group that'll always want a real home office, is any kind of business owner.. although that's probably the same as it's ever been.

Bjorik Mutize · Answer

@Tony Lee

It’s funny because some companies have begun reversing this notion, as so I am reading. More humanized factor in the office, face to face meetings etc.

But I digress. I think charging towards a trend of remote working one trend we will see less office square footage leased and demanded per tenant. Ie. a company taking 2 floors, 5000 square feet or something vs leasing or buying 30,000 square feet expecting everyone in the office at all times.

Greg Dickerson · Answer

Remote offering and co-working have have definitely disrupted he traditional office sector and affected it just like amazon has done to retail, hence the vacancies. There will always be companies, businesses and professionals that can not work from home but more and more we are seeing the trend continue.

How Working Remotely Will Impact the Future of Real Estate

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