Working from home and corporate real estate

Antonin Bergeaud, Jean Benoît Eyméoud, Thomas Garcia and Dorian Henricot

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We examine how corporate real estate market participants adjust to the take-off of teleworking. We develop an index for the exposure of counties to teleworking in France by combining teleworking capacity with incentives and frictions to its deployment. We find that the valuation of offices declined more in areas more exposed to telecommuting, a pattern that we do not observe for retail assets. In addition, we show that telecommuting increases vacancy, decreases construction, while transaction volumes are not affected. It implies that the drop in price is due to a shift in demand for space. In addition, our result suggests that market participants are expecting the shift to teleworking to durably affect the demand for office space.

Keywords: commercial real estate; corporate real estate; teleworking (search for similar items in EconPapers)
JEL-codes: G11 G14 G23 J60 R33 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2023-03-01
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Published in Regional Science and Urban Economics, 1, March, 2023, 99. ISSN: 0166-0462

Downloads: (external link)
http://eprints.lse.ac.uk/118482/ Open access version. (application/pdf)

Related works:
Journal Article: Working from home and corporate real estate (2023)
Working Paper: Working from home and corporate real estate (2022)
Working Paper: Working from home and corporate real estate (2022)
Working Paper: Working From Home and Corporate Real Estate (2022)
Working Paper: Working From Home and Corporate Real Estate (2022)
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