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Analysis

Remote Work Destroyed Even More Office Value Than Researchers Had Thought

A second version of a research paper from last fall shows higher percentage of losses.

Last fall, researchers from New York University’s Stern School of Business and from Columbia Business School looked at the effect of remote work on the office sector. “We document large shifts in lease revenues, office occupancy, lease renewal rates, lease durations, and market rents as firms shifted to remote work in the wake of the Covid-19 pandemic,” they wrote at the time.

“We find a 32% decline in office values in 2020 and 28% in the longer-run, the latter representing a $500 billion value destruction,” they wrote.

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Erik Sherman

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