What’s Going to Happen to All Those Empty Office Buildings? - Knowledge@Wharton - Deepstash
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Those Empty Offices

Those Empty Offices

What's Going to Happen to All Those Empty Office Buildings?

The broad shift to working from home during the pandemic may haunt the commercial real estate market for years to come, making it harder to fill vacant office buildings that were once brimming with tenants.

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Survival Of The Fittest

Survival Of The Fittest

Workers have proven they can function remotely, and they are demanding their employers keep the option of remote or hybrid work.

Over the next few years, as tenants start to rethink space needs and their leases roll over, they'll go into better buildings, and the worse buildings will be in trouble.

6

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The Likely Scenario

The Likely Scenario

Older buildings that go dark will become expensive eyesores. A reduction in workers flooding into office districts each day will squeeze city wage tax revenues, mass transit ridership, and the local economy. Restaurants, boutiques, and businesses within walking distance of an office will lose the daily foot traffic that keeps them in the black.

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