Many assume that in light of the pandemic, office real estate will collapse. Thus far, that does not appear to be the case, and in a post-pandemic world, most people are likely to return to an office. After all, more than 80% of employment in the U.S. is in the services sector, and for many of these businesses, the most valuable asset that they have is their people. The best way to develop human capital is through in-person interaction.
However, habits are likely to change. More employees may take up flexible work schedules, spending just a few days in the office each week and perhaps not having an assigned seat but instead using shared desks based on availability. Rather than spurring a huge reduction in office space needs, office space is likely to be used differently instead.