Researchers find remote work’s effect even worse than expected
The impact of teleworking on the demand for office space has been remarkable, especially in large cities. With the mass adoption of remote working, many companies have significantly reduced their need to maintain large central offices. This has led to a decrease in the occupancy of corporate buildings and an increase in the availability of commercial space. The high costs associated with renting office space in metropolitan areas, combined with the reduced need for physical presence, have led many companies to return their office space or renegotiate their leases for better terms.
Adoption of AI throughout the corporate would, I believe, intensify this trend.
I would also think residential real estate should be affected. Employees no longer need to live near the office. Will large cities suburbia real estate decline if not collapse too?
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Digital communication w/ computation/AI strongly transform what cities can or cannot do best. The relative advantages cities have therefore goes into radical transformation, as gross human density becomes uncorrelated with economic productivity.
But throughout history some human activities happen ONLY in cities — cultural and sporting events, the sense of “citizenship” not as taxes and rights but of identity and joy.
I would expect high end office space changes more than a bit but still thrives — physically present face to face work has big advantages for many forms of joint thinking, creativity, leadership within tight teams, and even job satisfaction.
I would expect a huge part of the inventory of rabbit warren office buildings would become totally obsolete, needing massive conversion or facing total replacement.
Of course, maybe instead we have a Butlerian Jihad and humanity does a total change of course???
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