What does the future of work look like? Employees at Fortune 500 companies will not be able to travel to the office five days a week, even after the threat of coronavirus.
This is a significant acceptance from a Morgan Stanley report tracking the return to the office plans of 611 large U.S. public companies with a combined market capitalization of about ১৫ 15 trillion.
“Our analysis shows that 69% of corporations are adopting a hybrid structure such as day to day and day to day WFH,” Ronald Camdem’s equity analyst and Morgan Stanley’s team of researchers wrote in a report on Tuesday, which tracked corporate data and policies in the third quarter.
Apple Inc., with seven industries including AAPL, prioritizing only 10% for office work when examining growing policies during an epidemic
Amazon.com Inc. AMZN,
Facebook Inc. FB,
Uber Technologies Inc. Uber,
Yelp Inc. YELP,
The diversification of the delta is part of the unconventional plans of many companies to bring back more workers this year or later this year, although the latest wave of US infections and hospitalizations seems to be peaking.
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Although it is too early to write the final chapter on how the epidemic has changed corporate America and its physical office space, it will probably not return to business normally.
The outbreak of the epidemic has forced millions of workers to quit their jobs as part of the “Great Resignation”, with some deciding to retire, while others are looking for less commute to jobs, higher wages or greater flexibility.
Global Real Estate Firm Jones Lang LaSalle JLL,
A recent workplace report called it the “ego revolution”, citing the inconvenience of endless workdays from home and the lack of face-to-face conversations, but also that “finding the right combination of home and office work is the obvious answer.”
To be sure, according to Morgan Stanley, about 34% of companies have started sending employees back to the office as early as the third quarter, which is roughly consistent with Castell Systems ’recent 10-city average office occupancy report.
Morgan Stanley analysts expect that number to rise to 70% by March 2020, or to stem the spread of seaweed in the United States after the first two years of nationwide lockdowns, but they also prolong an additional 0% of companies or return workers to office without a plan. .
Coming: 2 year mark
With so much change and uncertainty going on, the future of office building still needs time to take shape.
According to the Green Street Commercial Property Price Index, U.S. office building prices were held below% pre-Covid levels, where they rose %% for all types of properties of the same type.
But those figures also rely on frustrated sales activity during the epidemic, with many on Wall Street expecting next year to return to the office with steam to get a better picture of property prices and office leasing activity.
The spark of office life is quickly back in a few cities, including Austin, Texas, like San Francisco, a reminder that real estate is always warm in position.
For example, San Francisco’s high 26% office availability rate and discounted price এমনকি even in trophy buildings আসে comes in big, with technology-related companies leading the third quarter with nearly 2 million square feet of newly leased office space, up 5 percent year-over-year, according to Seville Research. Quarterly average.
Shares of many office REITS, including Boston Properties Inc., BXP, rose 13% to 17.5% year on year.
Hudson Pacific Properties Inc., HPP,
Office Property Income Trust OPI,
And Vornado Realty Trust VNO,
Although according to factset data, prices were lower than two years ago.
When the S&P 500 Index SPX,
Shares of Office Properties Income, which focuses on renting out buildings to single tenants, including government agencies, fell about 15% on Tuesday compared to two years ago, up nearly 5% from two years ago.
REITs did not immediately respond to a request for comment.
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