Working from home could wipe $800 billion from office values globally
Working from home could wipe $800 billion from office values globally
Remote work risks wiping $800 billion from the value of office buildings in major cities worldwide by 2030 as the post-pandemic trend pushes up office vacancy rates and drives down rents, according to a new report.
McKinsey said cities could adapt to the declining demand for office space by “taking a hybrid approach themselves,” developing multi-use office and retail space and constructing buildings that can be easily adapted to serve different purposes.
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They could use them for retail or…they could re-zone these areas for residential housing and reduce the cost of renting or buying a home, but that would make too much sense.
There isn't enough profit for the capitalists.
Exactly. 100 year leases with year on year increased service fees go brrrrrr
Rezone to multi-use zoning. Brownstones are a good way to build cities.
To be fair, commercial and office spaces often lack a lot of amenities that residential spaces have (lots of access to natural light, sufficient water supply and sewage capacity, etc.) but that will be incredibly dependant on the building for how much that complicates the conversion
sleeping in the street has plenty of natural light. I think you'll find some people are willing to make the sacrifice.
I would imagine there are a lot of challenges around converting high rise commercial buildings into housing. Many buildings only have a handful of toilets per floor, maybe a few sinks, and no showers. I'm also sure there are no gas lines in many of them (electric heating and cooking might suffice). But for sure, water delivery will be one of the biggest challenges.
Then there are even lame laws regarding parking requirements for a building with so many residents.
I imagine these would end up more like condos that tenements. Maybe 3-5 large units per floor. I dont think the plumbing retrofit would be a huge deal...nor the parking since an office that large would likely have had parking already. Mixes use zoning could lead to some pretty cool buildings potentially. Imagine living in a condo that had a grocery store and maybe some bars or restaurants on the lower floors.
Imagine living in a condo that had a grocery store and maybe some bars or restaurants on the lower floors.
That'd be pretty cool.
Live on the 10th. Coffee shop on the 5th and groceries on the 12th. A bar on the 15th and a 24h gym (open to anyone gym) on the 3rd.
I wonder how many floors you'd need to convert to residential to support the remaining commercial.
If they can split old churches into apartments, I'm pretty sure they can do the same to abandoned office buildings.
electric heating and cooking might suffice).
It would easily suffice. All these buildings have heating already so that's no issue, and electric cooking is safer anyways
You can't turn them into accomodations unless there's at least one egress window in the bedrooms