The WFH boom eroded NYC’s office real estate values

The WFH boom eroded NYC’s office real estate values

Summary : The shift to remote work destroyed about $58 billion, or 33%, in the value of office real estate in New York City through 2021, according to a working paper.

The big picture: The provocatively titled “Work From Home and the Office Real Estate Apocalypse,” published earlier this summer, underscores how the work-from-home boom was largely a bust for pricey corporate office space. While no one is crying for big office landlords, the decline in value — and loss of workers it signals — could have significant spillover effects on the city, which depends on a steady stream of commuters to fill-up tax coffers.
• That could signal a shakeout in office space not unlike what’s happened to retail malls.

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