Bifurcated Real Estate Market – The Impacts of Home Office Trends on Commercial Real Estate and Urban Economics
Year: 2024
Type: article
Abstract: This paper explores how remote and hybrid work modes are changing the US real estate market in the wake of the pandemic. The research shows that there is a clear segmentation of the market. Specific industries such as technology, finance and professional services requiring high-end office space to support their operations and brand image. Retail, healthcare and manufacturing all have a high demand for physical space due to their specific industry characteristics. This creates regional differences, with high-demand areas able to thrive while others struggle. Futhermore, the paper suggests the implementation of rental subsidies targeted at physical sectors such as retail and dining. This is a benefitial way to increase the demand for real estate and reduce the tax burden on local governments. Additionally, it recommends the repurposing of unused real estate for public services which would drive economic growth. Overall this would increase economic stability and support a more balanced real estate market.
Author: Yinan Shen
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405821246