Work From Home vs. Office: How CompStak Data Shapes CRE Market Insights – Research by Stijn Van Nieuwerburgh, Arpit Gupta, and Vrinda Mittal

At CompStak, we take pride in seeing our data drive valuable insights across industries, especially in academic research.

“Work From Home, Work From Office: Evidence from the CRE Market” by Stijn Van Nieuwerburgh, Vrinda Mittal, and Arpit Gupta, published through SSRN, explores the evolving trends in the commercial real estate market, especially in the context of the hybrid work model.

The full abstract of the paper can be found below, offering a glimpse into the depth of research that leverages the precision and accuracy of CompStak data to assess market changes.

“We show remote work led to large drops in lease revenues, occupancy, and market rents in the commercial office sector. We revalue New York City office buildings taking into account both the cash flow and discount rate implications of these shocks, and find a 46% decline in long run value. For all U.S. office markets combined, we find a $556.8 billion value destruction. Higher quality buildings were buffered against these trends due to a flight to quality, while lower quality office is at risk of becoming a stranded asset. These valuation changes have repercussions for financial stability and local public finances.”

Download the full paper here.