- August 7, 2022
- Posted by: Bastion team
- Category: World News
Commercial real estate is down and hybrid work is a big reason why, according to one real estate executive.
According to data from MSCI, commercial real estate transactions fell 22% in the second quarter from a year ago. And while inflation and an economic recession are both weighing heavily on the minds of real estate investors and “creating some hesitation,” Marcus and Millichap CEO Hessam Nadji said that it’s “not really a long-term concern.”
“The bigger concern is this hybrid work environment,” he said on Yahoo Finance Live (video above). “We’re seeing a lot of focus on amenities like fitness, child care, and even entertainment to motivate workers to want to come back in at least three days a week, four days a week, whatever it is depending on the company. There’s a lot of focus on how to create a reason for people to want to congregate and come back into the office space.”
Amid the pandemic, many companies were forced to shift their workplace settings away from strictly in office to remote working environments. As cases began coming down and vaccines became readily available, many companies opted for hybrid work — meaning a mix of both in-person and remote work — for their employees.
Hybrid work environments require less capital from companies as workers going into the office just a few days per week…