Remote Work Boom Leaves Office Market Struggling; Lawmakers Look to Residential Conversions for Relief
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Remote work is entrenched in the US, with 42% of employees working from home full or part-time. Return to office has "stalled."
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Office vacancies have hit 30-year highs, with occupancy around 50% in major metro areas. This is reducing office property values.
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Empty offices are impacting surrounding businesses like restaurants that relied on office worker foot traffic.
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Lawmakers are taking actions to convert vacant offices into residential units to address housing shortages. This could benefit residential real estate investors.
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Commercial real estate invested diverged 64% year-over-year. But long term there are still opportunities like REITs.