re: How Big Of A Hit Will Commercial Real Estate Take

I’m not sure about businesses closing per se but i would imagine there is an obvious sign of employees not needing to be in an office seat for 40 hours a week

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Have an office with a substantial conference room for group collaborations.

Have several docking stations for people who want to work away from home.

Allow people to work from home if they do not want to be in the office.

Flexibility is the key

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Have you ever done this? Before I worked for myself my company did this, we had 8 team members and they shut down an office and moved us all into a space with 4 desks and a meeting room. It was terrible. Supporting people to work from home from an IT and other perspective isn't cheap either. Just having a private workspace such as a cubicle or small office isn't that much more expensive over supporting everyone to work mobile. If you have to delay meetings, work around schedules of conference rooms, etc. that hurts productivity.

If you have 6 people making 6 figures plus, offices and a meeting room are cheap compared to the rest of your expenses.

Generally speaking office space isn't that expensive unless you are someone that needs PRIME space. But office space in say industrial complexes or suburban towns is pretty cheap all things considered.

I think the issue a lot of people have with working at the office is productivity. That's a cultural thing of your business and boss. Calling worthless meetings, forcing people to work until 5 when they are done at 3, etc. doesn't need to be solved by working from home. There's other deeper rooted issues there.

banks get bailed out

you get foreclosed on

banks hold property until it appreciates

banks lend to new "owner" with compound interest

12 years later, new "owner" gets foreclosed on

banks get bailed out

new interest/theft cycle begins

It won't take a very big hit. While working from home is feasible, there are serious logistical and practical constraints. And it's yet to be seen how much productivity/efficiency suffer from working from home.

Things will return to their former in-office status quo within 6 months of the quarantine limitations being listed, and the CRE business will remain largely unchanged.