The Impact of Remote Working ‘Work from Home’ on Office Price
This paper examines the impact of remote working, specifically working from home (WFH), on office prices in major metropolitan areas. The COVID-19 pandemic accelerated the shift to remote work, resulting in a significant decline in demand for physical office spaces. This trend has notably affected cities like New York and Los Angeles, leading to decreased office occupancy rates and leasing activities. Utilizing cross-sectional data from the Census Bureau and CoStar.com, and employing a two-way fixed effects regression model, this study analyzes the relationship between remote working and office prices. The findings reveal a significant negative correlation, indicating that increased remote working rates lead to lower office prices. This shift has broad implications for urban planning, infrastructure development, and the commercial real estate market. The research underscores the need for adaptive strategies in real estate investment and urban development to address the evolving dynamics of the post-pandemic work environment. Future studies could expand on these findings by examining long-term trends and industry-specific impacts.