A trend towards hybrid and remote work since the pandemic may cut $800 billion from office property values by the end of the decade, according to a recent study by consulting firm McKinsey.
McKinsey said that employees continued to spend far less time working at the office compared to the pre-pandemic era,
The survey, published on July 13, reviewed nine major metropolises, Beijing, Houston, London, New York City, Paris, Munich, San Francisco, Shanghai, and Tokyo.
The so-called “superstar” cities are regions with a disproportionate share of the world’s urban gross domestic product (GDP) and national GDP growth.
“In a moderate scenario that we modeled, demand for office space is 13 percent lower in 2030 than it was in 2019 for the median city in our study. In a severe scenario, demand falls by 38 percent in the most heavily affected city,” McKinsey said….