Office Real Estate Isn't Going Away
Although the pandemic has proved the viability of remote work, we think offices are here to stay.
The coronavirus pandemic has caused unprecedented changes and disruptions in everyday life. Of these changes, few have been as impactful or as frequently discussed as the lockdown-induced work-from-home experiment, which has caused many to question conventional wisdom on how work should be conducted. This experiment has caused widespread speculation that the office real estate industry will be permanently impaired as employees work remotely forever.
We demur. For all its excess, the coworking craze demonstrated that the desire to convene physically to conduct work has strengthened even in an increasingly digital world. Moreover, most employees have emphatically indicated an enduring preference toward flexibility in the form of hybrid remote work. Elements central to work, such as collaboration, company culture, and career development, are more effectively served in a centralized, purpose-built office environment.
Yousuf Hafuda does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.