Working from home and corporate real estate

Bergeaud, Antonin, Eyméoud, Jean-Benoît, Garcia, Thomas and Henricot, Dorian (2022) Working from home and corporate real estate. CEP Discussion Papers (1831). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

We examine how corporate real estate market participants adjust to the take-off of teleworking. We develop an indicator of the exposure of counties to teleworking in France by combining teleworking capacity with incentives and frictions to its deployment. We study how this indicator relates to prices and quantities in the corporate real estate market. We find that for offices in counties more exposed, the Covid-19 crisis has led to (1) higher vacancy rates, (2) less construction, (3) lower prices. Our findings reveal that teleworking has already an impact on the office market. Furthermore, forward-looking indicators suggest that market participants are anticipating the shift to teleworking to be durable.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2022 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory
JEL classification:	G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice; Investment Decisions G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency; Event Studies G - Financial Economics > G2 - Financial Institutions and Services > G23 - Pension Funds; Other Private Financial Institutions J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J60 - General R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R33 - Nonagricultural and Nonresidential Real Estate Markets
Date Deposited:	09 Jan 2023 11:03
Last Modified:	15 Sep 2023 23:58
URI:	http://eprints.lse.ac.uk/id/eprint/117800

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