Working From Home and Corporate Real Estate

We examine how corporate real estate market participants adjust to the anticipated take-off of teleworking. We develop an indicator of the exposure of counties to teleworking in France by combining teleworking capacity with incentives and frictions to its deployment. We study how this indicator relates to prices and quantities in the corporate real estate market. We find that for offices in counties more exposed, the Covid-19 crisis has led to(1) higher vacancy rates, (2) less construction, (3) lower prices. Our findings reveal that teleworking has already an impact on the office market. Furthermore, forward-looking indicators suggest that market participants are anticipating a deeper shift to teleworking in the coming years.

Keywords: corporate real estate, commercial real estate, teleworking

JEL Classification: G11, G14, G23, J60, R33

Suggested Citation: Suggested Citation

Bergeaud, Antonin and Eyméoud, Jean-Benoît and Garcia, Thomas and Henricot, Dorian, Working From Home and Corporate Real Estate (November 28, 2021). Available at SSRN: https://ssrn.com/abstract=3973122 or http://dx.doi.org/10.2139/ssrn.3973122