Return to Office Outlook
How the Labor Shortage Shapes Commercial Real Estate Trends
Role of Labor Markets in Return-to-Office Decisions
Health concerns were original reason for remote work, but worker preferences are now the biggest hurdle
Strong job gains continue to support consumption and CRE space demand
The U.S. currently has a substantial labor shortage which drives continued remote work trends
What it Could Take to Resolve the Labor Shortage
Overall unemployment rate is 3.7% and just 1.9% for college educated workers
Severe shift necessary to re-align employment trends
What this Means for Commercial Real Estate?
Remote work benefits suburban CRE space demand
Return-to-office would boost urban CRE demand
Lingering labor shortage a headwind for service staff dependent CRE like hotels and seniors housing
*Through July, Unemployed through August
Sources: Marcus & Millichap Research Services, BLS