Office space will recover much more quickly than retail properties from their current levels, as workers return to the office once Covid-19 becomes less of a risk, according to real estate billionaire Sam Zell.
Sam Zell, founder and chairman of Equity International, is in New York City. Steven Ferdman is a photographer.
In an interview with CNBC, the founder and chairman of Equity Group Investments said he thinks office space will fill once Covid-19 poses less of a risk to workers.
He thinks that retail is more of a falling knife than a viable space.
He predicted that the recovery of office space will be dependent on thriving industries and hiring more workers to work the office, but also that hybrid work will become commonplace.
The current disparity between office prices and office attractiveness is one of the reasons why some offices will be hard to sell without significant investment.
Many employees were forced to work from home due to the Covid-19 Pandemic, which resulted in a decline in the amount of employees working in the office. According to the National Council on Compensation Insurance, 75% of workers never worked from home before. 70% of Americans who said their job responsibilities can be done from home said they worked from home in 2020, according to the research. Demand for office space across the country was 29% lower in March of 2016 than it was in March of 2015, a rebound from a 60% year over year decline in January. Many major companies, including Facebook, have moved to allow workers to work from the office if they are vaccinations, but do not require employees to work full-time in the office.
$5.8 billion. Forbes has a net-worth tracker that shows how much Zell is worth.
The largest real estate deal of all time was the $39 billion sale of the office properties of Zell to the private equity firm of Blackstone.
Office space will recover much faster than retail, says real estate billionaire Sam Zell.
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