“Return to office” mandates from the tech and finance industries are coming rapidly. But they’re not just going back to the downtown areas. Return to office (RTO) calls could cause a surprisingly beneficial boost to suburban areas, even as employees are forced back into the office. This has enormous effects on landlords and real estate investors, as the hottest place to own a home might actually be somewhere outside of the city center.
Matt Reidy, Director of CRE Economics at Moody’s Analytics, joined us to give a full update. Matt talks about the potential office comeback that could be taking place and the one type of office investment that is outperforming the rest. However, office vacancies are still at an all-time high, and companies are starting to get creative. Could a move into the suburbs help entice employees by keeping commute times minimal?
This could be great news for residential investors outside the cities, as “live, work, play” environments could become a hot commodity.
Dave:
Over the last couple months, we’ve seen a lot of major employers call employees back to the office, but the data also tells us that employees are reluctant to return and there are a lot of hybrid situations developing as well. What does this mean for the future of work and how does this translate to demand for housing and for apartments in the areas that there are a lot of offices? Today’s expert shares his insights. Hey friends, welcome to On the Market, the real estate News and economic shows for investors and real estate professionals like you. Today I’m here with Matt Reidy, a director of commercial real estate Economics with Moody’s Analytics. Matt’s research has led him to an insight around a specific type of office property that is still performing really well. And I’m also super excited to talk to Matt about how the activity in the office sector is translating to demand for residential properties. And I’m not just talking about residential…