The great exodus from workplaces caused by the COVID-19 pandemic and the rising adoption of remote or hybrid work is claiming a victim in the market: commercial real estate.
It could be just the start of a prolonged sector turmoil.
The latest news adds fuel to the fire as Microsoft Corp (NASDAQ: MSFT) joins the ranks of tech giants looking to sublease its office space in Manhattan’s Times Square.
Major technology companies, including Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), Meta Platforms Inc. (NASDAQ: META) and Amazon.com, Inc. (NASDAQ: AMZN) are also scaling back their real estate footprints — and this trend shows no signs of abating.
Tesla Inc. (NASDAQ: TSLA)’s CEO Elon Musk further intensified concerns surrounding commercial real estate with his tweet on May 29. Musk stated, “Commercial real estate is melting down fast. Home values next,” indicating a potential ripple effect in the real estate market.
Return To Office Struggles, Creating Downside Pressure On Commercial Real Estate Prices: According to The Flex Report, the share of people working full time at the office dropped from 49% to 42% in the second quarter of 2023, intensifying …
