“Leaving New York, never easy."
It’s hard to get one’s arms around all the ways Covid reshaped commercial and residential real estate, and those impacts continue to ripple through our cities and suburbs. Chief among them: one-quarter of all days worked in the US are now remote, and WFH continues to destroy long-standing norms related to suburban and urban real estate values.
New research on WFH’s impacts finds suburban CRE pricing has sharply appreciated relative to urban assets. In 2017, suburban assets traded at a 9% average discount to urban assets, and that narrowed to zero by 2023.1 Office, the most sensitive to WFH, saw pricing nationwide move from a 20% discount to a suburban price premium in the same time period.
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