Working from home and corporate real estate

Bergeaud, Antonin; Eyméoud, Jean-Benoît; Garcia, Thomas; Henricot, Dorian

doi:10.1016/j.regsciurbeco.2023.103878

Cited by 9 publications

(4 citation statements)

References 40 publications

(32 reference statements)

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“…They report a 44% decline in long-run value when they revalue New York City office buildings, considering both the cash flow and discount rate implications of these shocks. For France, Bergeaud et al (2023) find that the valuation of offices declined more in areas more exposed to teleworking, a pattern that they do not observe for retail assets. Their results suggest that market participants are expecting the shift to teleworking to durably affect the demand for office space.…”

Section: Introductioncontrasting

confidence: 56%

Commercial real estate prices in Europe after COVID-19

Hoesli,

Malle

2023

JERER

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PurposeThe article aims to analyze the behavior of commercial real estate prices in Europe, with a focus on the post-coronavirus disease 2019 (COVID-19) pandemic period. The authors use national and city-level data for the various commercial real estate sectors in ten countries, as well as listed real estate data, to assess any differences across property type and space.Design/methodology/approachThe authors analyze the behavior of commercial real estate prices after the COVID-19 pandemic, emphasizing differences across property types. For that purpose, the authors use national and city-level direct real estate data for the ten largest countries in terms of market capitalization, as well as listed real estate data. The article then turns to discussing the likely trajectory of commercial real estate prices in the future.FindingsThe recent rise in interest rates and geopolitical instability have affected prices differently across sectors. Industrial properties benefited from the pandemic, although prices declined significantly in 2022. Residential properties continued their upward price trend and have been the best-performing property type during the last two decades. Retail real estate continued its downward price trajectory. Thus far, office markets do not appear to be significantly affected by structural changes in the sector. The data for listed real estate markets in Europe suggest that markets bottomed out in early 2023.Originality/valueThis paper provides for a better understanding of the behavior of commercial real estate prices in Europe since the COVID-19 pandemic. The authors assess whether the effects found during the COVID-19 crisis were temporary or long-lasting. Also, many economic and political uncertainties have emerged since the beginning of the Ukraine war in February 2022, and it is important to analyze the effects of such uncertainties on commercial real estate prices.

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Section: Introductioncontrasting

confidence: 56%

Commercial real estate prices in Europe after COVID-19

Hoesli,

Malle

2023

JERER

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“…The authors presented proposals and guidelines for creating sustainable pandemic resilient cities. The pandemic has also boosted interest in remote work (Bergeaud et al, 2023). Other researchers emphasize the need to design cities to accommodate pandemic-control measures while attending to people's daily needs, including access to outdoor spaces for physical, social, and mental well-being (Alawadi et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Population Change as an Aspect of Suburbanization of Major Cities in Poland

Gnat

2024

Real Estate Management and Valuation

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Cities function in people’s minds as reservoirs of opportunities and possibilities. For many people, living in a city seems an attractive and logical life choice compared to areas perceived as provincial. However, the reality of the modern city is also associated with numerous nuisances. The occurrence of these disadvantages has led to the development of mechanisms intended, at least in principle, to counteract the ills of urban life. One such mechanism is the phenomenon of suburbanization. The outpouring of urban functions beyond its boundaries occurs all over the world. However, this phenomenon also entails exacerbating transport bottlenecks, requires a lot of local investment, contributes to the deterioration of the environment, and disrupts household time budgets. This paper addresses population change as one of the demographic aspects of suburbanization. The trends characterizing the outflow of population from cities and the inflow of population to suburban areas has been examined. The study covers several of Poland’s largest cities using data from the 2011 and 2021 National Censuses. The main objectives of this study are to assess the scale of suburbanization in large and medium-sized Polish cities, so as to determine whether suburbanization occurs similarly regardless of city size. To identify those urban centers where the population change in neighboring municipalities is particularly high so as to raise the awareness of decision-makers and real estate market participants in relation to the challenges posed by suburbanization. In addition, using one city as an example, an assessment of how the influx of population affects number of transactions on selected real estate market was carried out. The results of the study may be useful in analyzing investment needs for various types of infrastructure, including roads and technical infrastructure.

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“…We complement their evidence with additional measures of local demand, and a longer time period that covers the staggered pace of reopening, with the ensuing rebound of liquidity in the market. Bergeaud et al (2021) focus on the longer-term impact of the pandemic and find that increases in the magnitude of remote work are associated with higher vacancy rates, less construction and lower prices in the office sector. Analyzing the CRE market in Ireland, Kennedy et al (2021) find consistent evidence that vacancies rates are an important determinant of downside risks to CRE prices, with a more pronounced impact on retail and office segments after the Covid-19 shock.…”

Section: Introductionmentioning

confidence: 99%

Commercial Real Estate in Crisis: Evidence from Transaction-Level Data

Alter¹,

Mahoney²,

Badarinza³

2023

IMF Working Papers

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Transaction-level data were provided by Zillow through the Zillow Transaction and Assessment Dataset (ZTRAX). More information on accessing the data can be found at http://www.zillow.com/ztrax. The results and opinions are those of the authors and do not reflect the position of Zillow Group, Inc., SafeGraph, or Real Capital Analytics. Business listings and footfall data were provided by SafeGraph.

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Working from home and corporate real estate

Cited by 9 publications

References 40 publications

Commercial real estate prices in Europe after COVID-19

Commercial real estate prices in Europe after COVID-19

Population Change as an Aspect of Suburbanization of Major Cities in Poland

Commercial Real Estate in Crisis: Evidence from Transaction-Level Data

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