Murtaza Haider contributed an op-ed to the latest issue of the Land Economist. The latest issue will be available at http://aole.org/publications/
A big shift, albeit temporary, has already taken place in the way knowledge economy workers are discharging their responsibilities during COVID-19. Gone are the commutes on congested roads and crowded public transit. Office towers, which once bustled with workers, have remained mainly empty. The retail and hospitality businesses around office towers have also been mostly shut.
These changes are likely to impact the bottom line of landlords who hold large portfolios of office and commercial real estate. If working from home becomes the new norm, even realizing at a much lower rate in the future than during the pandemic, the demand for office and commercial real estate is likely to decline. This could result in higher vacancies and ultimately lower rents, especially in urban areas served predominantly by public transit.