As hard as the pandemic has been for many people, one of the few silver linings of this period has been the revelations of the work-from-home approach. While it is not viable or preferred to make work-from-home a permanent approach for every job, there are many tasks and operations that don’t necessarily require a presence in the office five days a week. This shifting dynamic in modern work culture may bring about many opportunities in the real estate business, especially in the Bay Area.
Make no mistake; the dramatic country wide shift of the work environment has been absolutely vital to combatting the virus and saving lives. We should take solace in the fact that a large part of our economy has been able to withstand and adapt to this new reality without collapsing our overall level of production. Projections have shown that we may be dealing with these circumstances until the roll out of a vaccine, which will not come until 2021. Given this reality, we can not expect an immediate switch back to “normal” once the virus has been dealt with. As many companies have continued their operations under these circumstances, many third party firms have been providing consultations on what aspects of this work approach should be kept around once we are past the pandemic. Many workers have found that individual projects and administrative tasks have been relatively easy to do remotely. Companies can potentially incorporate remote days into their work weeks, even after the reopening of the country.
Are offices still needed?
An office space is generally appreciated for its ability to get workers together and collaborate in meeting room settings. This is one of the few aspects that has been a struggle to translate fully into an online form. Being in physical presence with one another can flow conversations more smoothly and allow for ideas to be bounced back and forth in real time. Many instances of interpersonal bonding are lost when interactions with colleagues only take place remotely. Offices also provide a space for mentorship towards newer talent that companies look to develop overtime.
The Future of Work
While some aspects of an office building provide incredible value for a company, the revelations of remote work will undeniably be incorporated into their approach in the future. One of the main changes that may result from this is the ability to only come to the office 2-3 times a week and have the remaining work days be conducted from home. A recent study conducted by multiple business firms projects an overall increase in working days spent from home going from 5% to 20%. The possibilities of this should make real estate investors intrigued with the potential of a resurgence in the suburbs. Many city centers have had issues with providing affordable housing prices for those who prefer not to make two hour plus megacommutes from remote suburbs five times a week. Having fewer days of commuting can make the suburbs and rural areas more viable for prospective home-owners. There had been a trend since the 1980’s of major growth within the cities and away from the suburbs. We may be at an inflection point and go back in the opposite direction.
Impact on Bay Area Real Estate
According to Global Workplace Analytics, an estimated 56% of the workforce has a job (partially) compatible with remote work. Given that the Bay Area is the leading tech center of the world, the transition to remote work is much smoother compared to other industries. Megacommutes are common for workers in the South Bay and Peninsula due to the high cost of living within the city. East Bay Realty has taken note of the current shift in the workforce and recognizes the potential for affordable housing within the East Bay. As demand rises for reasonable housing prices further away from the South Bay, we look to provide those opportunities through our combined 50 years of real estate experience and knowledge of the East Bay. Give us a call today to book a free consultation!
510-344-6368
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