The Impact of Working from Home on the German Office Real Estate Market
BIG-DATA-BASED ECONOMIC INSIGHTS
Key Messages
- A quarter of the workforce regularly works from home, oftentimes blending office and remote work
- The office market is undergoing a stress test, with challenging conditions expected to persist
- The permanent shift toward working from home (WFH) is expected to decrease long-term office space demand by around 12 percent
- In industries with high WFH rates, new office leases show a flight to quality with higher rents
- An office building’s ability to meet the growing “new work” demands is now a key leasing factor
Abstract
A quarter of employees in Germany regularly work from home (WFH), which is often a mixture of office and remote working. The office market in this country is undergoing a stress test and the steady shift to WFH will significantly reduce demand for office space in the long term.
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Citation
Simon Krause, Andreas Trumpp, Tobias Dichtl, Susanne Kiese and Alexander Rutsch : "The Impact of Working from Home on the German Office Real Estate Market," EconPol Forum 25 (5), CESifo, Munich, 2024.