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Working from home and corporate real estate

Author

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  • Bergeaud, Antonin
  • Eyméoud, Jean-Benoît
  • Garcia, Thomas
  • Henricot, Dorian

Abstract

We examine how corporate real estate market participants adjust to the 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 the shift to teleworking to be durable.

Suggested Citation

  • Bergeaud, Antonin & Eyméoud, Jean-Benoît & Garcia, Thomas & Henricot, Dorian, 2022. "Working from home and corporate real estate," LSE Research Online Documents on Economics 117800, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:117800
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    File URL: https://eprints.lse.ac.uk/117800/
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    Cited by:

    1. Lalinsky, Tibor & Anyfantaki, Sofia & Benkovskis, Konstantins & Bergeaud, Antonin & Bun, Maurice & Bunel, Simon & Colciago, Andrea & De Mulder, Jan & Lopez, Beatriz Gonzalez & Jarvis, Valerie & Krasno, 2024. "The impact of the COVID-19 pandemic and policy support on productivity," Occasional Paper Series 341, European Central Bank.
    2. Barrero, José María & Bloom, Nicholas & Davis, Steven J. & Meyer, Brent & Mihaylov, Emil, 2022. "The Shift to Remote Work Lessens Wage-Growth Pressures," IZA Discussion Papers 15385, Institute of Labor Economics (IZA).
    3. Behrens, Kristian & Kichko, Sergei & Thisse, Jacques-Francois, 2024. "Working from home: Too much of a good thing?," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    4. Sylvain Chareyron & Camille Régnier & Florent Sari, 2022. "COVID-19 and Dynamics of Residential Property Markets in France: An Exploration," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 536-37, pages 75-93.
    5. Julia Cage & Edgard Dewitte, 2022. "When Does Money Matter for Elections?," Post-Print hal-03619549, HAL.
    6. Lina Bjerke & Steven Bond-Smith & Philip McCann & Charlotta Mellander, 2024. "Work-from-home, relocation, and shadow effects: Evidence from Sweden," Working Papers 2024-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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    More about this item

    Keywords

    corporate real estate; commercial real estate; teleworking;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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