When the COVID-19 pandemic struck in 2020, many office employees were forced to work remotely due to stay-at-home orders. This trend has continued as the current influenza strain and respiratory syncytial virus (RSV) have made remote work an attractive option for employees.
According to a recent article by business affairs editor Rachana Shanbhogue in The Economist, workers are now spending an average of one and a half days per week working from home and would like this number doubled. However, bosses are not as keen on remote work. Companies such as Goldman Sachs and Zoom are asking their reluctant workers to return to the office more frequently.
Shanbhogue notes that while the traditional five-day-a-week schedule is becoming obsolete, it is unlikely that remote work will completely replace in-person office time. This could mean less flexibility for employees who prefer working from home.
The state of the economy also plays a role in determining how much companies will allow remote work going forward. If higher interest rates slow down economic growth and lead to increased unemployment rates, employers may be less willing or able to accommodate employee preferences for remote work.
Despite initial concerns about increasing vacancies in commercial properties due to widespread adoption of remote work practices, there has been minimal impact on the industry thus far due largely long-term leases still being honored. However,this could change moving forward into 2024.
Goldman Sachs predicts that by 2024:
12% of office leases will expire – twice as many compared with 2023
Remote working may result in up to46 million square feetof vacant space across offices throughoutthe United States – equivalentto all new construction completedin 2022
Office buildings meeting stricter environmental standardswill be highly sought afterwhile older structuresmay struggleto attract tenants
Shanbhogue emphasizes that COVID-19 has brought about significant changes within professional life with lasting effects on corporate hierarchiesand financial systems.This shift towards remote work will continue to shape the way people work and live even as the pandemic comes to an end.
