Face-to-face Interactions, Tenant Resilience, and Commercial Real Estate Performance

Real Estate Economics, Forthcoming

69 Pages Posted: 8 Dec 2020 Last revised: 10 Oct 2022

See all articles by Chongyu Wang

Chongyu Wang

The University of Hong Kong

Tingyu Zhou

Florida State University

Date Written: September 4, 2022


We study the impact of face-to-face (FTF) interactions on commercial real estate (CRE) performance. By linking tenants, properties, and CRE firms, we construct three novel FTF measures that capture tenant remote working, internal communication between coworkers, and external contact with customers. Using the COVID-19 pandemic as an exogenous shock to the FTF economy, we find that firms holding properties with tenants that are more resilient to social distancing perform better. These FTF effects weaken over the long term, however. As investors are capable of compiling valuable information at granular levels regarding how tenants operate, our findings support market efficiency and shed light on post-pandemic CRE performance.

Keywords: Commercial Real Estate, Face-to-Face Interactions, Tenant Resilience, Social Distancing, COVID-19 Pandemic

JEL Classification: G01, G11, G12, G14, R30

Suggested Citation

Wang, Chongyu and Zhou, Tingyu, Face-to-face Interactions, Tenant Resilience, and Commercial Real Estate Performance (September 4, 2022). Real Estate Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3743818 or http://dx.doi.org/10.2139/ssrn.3743818

Tingyu Zhou

Florida State University ( email )

821 Academic Way
Tallahassee, FL 32306
United States

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