Why Developers Favor Streetcar
Why Developers Favor Streetcar
Public Should Be Concerned
Mayor Stothert and City officials continue to push for a streetcar but in many ways, they still buy into misleading assumptions. I understand the congestion issue but the digital economy is slowly addressing this problem. At the same time, the plan appears to be hatched by commercial property owners trying to recuperate losses on their investments. This is because the pandemic rapidly pushed people into the digital economy as never before. The impact on commercial properties was substantial.
This is why I wish I could see Mutual of Omaha’s research and the other developers on this matter and what has happened with their share of investments in Omaha over the years. I did a query with Perplexity AI and received these responses.
What percentage of Americans work from home compared to 10 years ago?
Based on the search results provided, there has been a significant increase in the percentage of Americans working from home compared to 10 years ago:
1. Before the COVID-19 pandemic (around 2019-2020), approximately 7% of U.S. workers were working from home[1][2]. This represents a steady increase from about 3.2% in 2000[2].
2. During the peak of the pandemic (around May 2020), the percentage of Americans working from home rose dramatically to about 61.5% of full-paid working days[2].
3. As of 2022-2023, the percentage has settled at a level much higher than pre-pandemic figures, but lower than the peak:
- About 35% of workers with jobs that can be done remotely are working from home all of the time[1].
- An additional 41% of those with teleworkable jobs are working on a hybrid schedule, splitting time between home and office[1].
- In total, approximately 27.6 million people (or 17.9% of employees) reported primarily working from home in 2021[2].
4. Looking towards the future, it's estimated that by 2025, about 22% of the American workforce (36.2 million workers) will be working remotely[3].
Comparing these figures to 10 years ago (around 2014), when the percentage of remote workers was likely between 3-5%, we can see a substantial increase. The exact percentage depends on which metric we use (all-remote vs. hybrid, all workers vs. those with teleworkable jobs), but it's clear that remote work has become much more prevalent. The COVID-19 pandemic accelerated this trend significantly, and while there has been some return to office work, remote and hybrid work arrangements remain much more common than they were a decade ago.
Citations:
[2] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9988592/
[3] https://www.apollotechnical.com/statistics-on-remote-workers/
[4] https://www.statista.com/topics/7145/remote-work-in-the-us/
Has this hurt investment in commercial properties?
The impact of remote work on commercial real estate investments has been significant, but it's not entirely negative. Here's an overview of how remote work has affected investment in commercial properties:
1. Shift in demand: There has been a decrease in demand for traditional office spaces, especially in urban centers, as companies recognize the cost savings and flexibility of remote work[2]. This has led to some vacant office buildings and reduced occupancy levels in certain areas.
2. Adaptive reuse opportunities: Property owners and investors are exploring opportunities to repurpose underutilized office spaces into alternative uses that cater to changing needs[2]. This includes converting vacant office buildings into residential apartments, co-living spaces, or mixed-use developments.
3. Rise of co-working spaces: As remote work gains prominence, there's an increased demand for flexible workspaces[2]. Investors are leveraging this trend by developing or partnering with co-working operators to provide spaces tailored to remote workers and small businesses.
4. Suburban and non-urban areas: The focus on remote work has led to a reevaluation of location priorities. Commercial properties in suburban or non-urban areas may gain significance, presenting new investment opportunities[2].
5. Technology infrastructure: Properties equipped with robust technology infrastructure, such as high-speed internet and smart technologies, are becoming more attractive to tenants and investors[2].
6. Industrial sector growth: The remote work trend has indirectly boosted demand for industrial space, particularly warehousing and logistics, due to the surge in e-commerce and home delivery services[3]. This sector has seen significant growth and investment opportunities.
7. Retail adaptation: There's been a rise in demand for local community-centric retail and restaurant spaces, as well as a focus on creating memorable shopping experiences in physical stores[3].
While the shift to remote work has certainly presented challenges for some segments of the commercial real estate market, it has also created new investment opportunities in areas like flexible workspaces, suburban locations, industrial properties, and technologically advanced buildings. Investors who adapt to these changing market dynamics can still find success in the evolving landscape of commercial real estate[2][3].
Citations:
[1] https://www.bgsf.com/post/out-of-office-the-impact-of-remote-work-on-commercial-real-estate
[2] https://toljcommercial.com/impact-of-remote-work-on-commercial-properties/
[3] https://www.occupier.com/blog/remote-work-impact-on-commercial-real-estate/
[4] https://www.regus.com/work-canada/en-ca/revolutionising-how-to-sell-workspace/
[5] https://qz.com/commercial-real-estate-losses-remote-work-1850638404