Working from home and corporate real estate

Bergeaud, Antonin, Eyméoud, Jean Benoît, Garcia, Thomas and Henricot, Dorian (2023) Working from home and corporate real estate. Regional Science and Urban Economics, 99. ISSN 0166-0462

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Abstract

We examine how corporate real estate market participants adjust to the take-off of teleworking. We develop an index for the exposure of counties to teleworking in France by combining teleworking capacity with incentives and frictions to its deployment. We find that the valuation of offices declined more in areas more exposed to telecommuting, a pattern that we do not observe for retail assets. In addition, we show that telecommuting increases vacancy, decreases construction, while transaction volumes are not affected. It implies that the drop in price is due to a shift in demand for space. In addition, our result suggests that market participants are expecting the shift to teleworking to durably affect the demand for office space.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/regional-sci...
Additional Information:	© 2023 Elsevier B.V.
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:	23 Mar 2023 11:00
Last Modified:	12 Dec 2024 03:39
URI:	http://eprints.lse.ac.uk/id/eprint/118482

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