As we’re learning, COVID-19 is causing profound changes in the way we live and causing us to question many long-held assumptions about how things work, indeed, how they must work. I’ve written about some of those things previously.
Today’s example is one I’ve mention before: office space. For as long as any of us have been alive, offices have been a ubiquitous presence and most of us can’t imagine the modern world without them. Even those of us embracing remote work—in all its guises—have assumed that most people would have to remain stuck in an office. No alternatives seemed reasonable.
COVID-19 has turned those assumptions upside down. It turns out that many people can work effectively and efficiently outside the office. The micromanagers hate this, of course, but COVID-19 has left them no choice. Along with the micromanagers, one of the big losers in this is the office space market.
Reuters says that corporate America is downsizing it’s real estate footprint. Office space vacancy rates in New York City are already 8.7% and are expected to increase to 10–12% in two to five years. This is a win for most corporations because they’ll save significant money on the hideously expensive office rents in the major cities such as New York and San Francisco.
Of course, things could return to normal after COVID-19 subsides but that strikes me as unlikely. Many workers have found they like working from home and are loathe to return to the office and attendant commutes. Technology will get better and sanding down the rough edges with remote work and, of course, there’s those savings on office rent. I’m guessing that office space rentals is going to be one of the casualties of COVID-19.