$800 billion worth of office space is at risk, caused by lower demand due to remote work, according to a McKinsey report.
Based on a survey of 13,000 full-time office workers, the management-consulting firm built a model that projects demand for real estate in nine major cities across the US, Europe, and Asia. The cities include San Francisco, London, New York, Houston, Paris, Munich, Tokyo, Beijing, and Shanghai.
The consulting giant found that, in most of these cities, demand in 2030 will still be lower than it was in 2019, before the pandemic. The $800 billion figure is based on an average 26% decline in the value of the cities’ office space across that time period.
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