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Hybrid-work trend may wipe out $800 billion from office property values by 2030, McKinsey study says (www.reuters.com)

submitted 1 year ago by [email protected] to c/[email protected]

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A shift to remote working is likely to wipe off $800 billion from the value of office buildings in major global cities by 2030, according to a study published by consulting firm McKinsey on Thursday.

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[–] [email protected] 12 points 1 year ago (2 children)

Using existing buildings for apartments would be great for the housing markets. For example, a building that used to be used for a TV broadcasting company in SF was turned into pretty nice apartments at relatively reasonable prices. Much better use for the buildings than empty offices.

[–] [email protected] 3 points 1 year ago

It's not as easy as it first seems. You have to think about what is usually included in an apartment (toilets, sinks, showers, ovens, stovetops, windows, garbage chutes etc) and realise that many of those items will need significant building renovations. Most office suites don't have bathrooms (there will be one large bathroom in the middle of the building), so separate bathrooms will need to be built for each apartment. No one wants to live in an apartment without windows, so the only parts of the building used for residential will be on the edges of the floor.
It's not impossible - but it would require an upfront investment that would then demand a higher price for the property.