Interesting observation and may hold true for many industries. 

Short-term, yes.

However, the Wuhan Virus trend of distancing will fade, ultimately commercial will feel the pinch when the owner looks at employees not social distancing ever and then he starts to wonder "why do we need all this space then?"

There are so many 'ideas' being floated right now. All I am certain of is what is happening in my own life and my business! 

It will be interesting to see how it all pans out though, Peter.

I've heard that.  What people a failing to take into account is that these six foot rules are not here to stay.  This is a temporary thing.

At least they are not jumping out of them like the great depression almost a hundred years ago.

So many trends since the depression and the great idea of the urban renewal of the '70s that destroyed most Main Streets in the area here.

With government interference today, we now have malls that are becoming empty and being converted to housing and public recreation, we also have low-income apartments(steering in it legal form) and many town-homes being pushed towards seniors and little home construction for buyers to raise their families. because of all this and a virus that is either the real thing or a hoax to have everything delivered to the front door and no need for the big commercial properties. Oh, and the internet and media are pushing it all along at an alarming pace.

As they say, everything changes, and will it be for the best!

Peter,

We were predicting this in the late 90's.  Too much office space and too much retail space...We were advising shorter leases on Video stores, and longer leases on warehouses.  We were recomending less development, now they have something to blame it on...A

I had not heard that Peter Testa . It makes some sense in theory but I wonder if it takes into account all the businesses that will forever close due to the government restrictions. I just relocated my business (same building) because I needed to expand. I tripled my floor space.

That is interesting and, if this trend does continue, seems likely.  I am thinking this will pass sooner than we expect.  

That space is going to become light to heavy Industrial, fulfillment centers and centers for manufacturing, packaging and shipping.

Sorry, don't get it. 

I like those shared office spaces that they have now. You get a seat, they have a copier, a nice lady that answers the phone & you are working away for a fee.

Brick and mortar has been under intense scrutiny for decades and it is getting worse as we go. We see the obvious and the trend proving its diminishing state. Add Acts of Man (virus) and it is terminal. The only thing I see of value is large tracts of well-zoned land, MFG sites and warehouses. Super centers can make commerical work but mom & dad cannot.

Hard to say - more companies may be willing to let employees telecommute, but if some companies grow/add employees more space could be needed in the longterm.

I've been on Zoom calls with several CEO's of retail and commercial complexes trying to anaylze and project numbers. I work in a high rise. Working on solutions that involve: not returning to elevator, door man, break room, tiny conference room, open office setting, even the parking structure requires that people crowd in and walk about 2 feet from one another at 8 AM noon and 5:15. This is now a trend and we need to change. Net loss change

Can't say that I have

Yes, many large firms are deciding that working from home actually works and is more efficient in terms of saving on office space. Some NYC investments banks have announced that they will continue that trend, which spells trouble for commercial office space in the big Apple; not net zero change, actual reductions in space is the concern.

When the numbers are crunched and the real cost of remote working is understood, owners simply won't be able to turn away from the opportunity.

Success will be directly related to cultivating/recruiting a new kind of manager. Those lacking that agility will continue feeding the existing commercial real estate market place becuase they can only effectively manage what they can SEE.

Look for those within the special group start promoting restricting work from home, and home based business as code violation and to protect workers from economic abuse.  City leaders want to protect the commercial real estate INCOME and will take the bait hook, line and sinker.

Many businesses are now in he "pondering" mode as to space requirements. Some will need less, but some will need more with social distancing. Time will tell!

I am seeing a mix. We already have big office space now listed for lease or sale. Once things get going again, it could balance. The key is meaduring productivty from home vs in an office.

Perhaps, will have to wait and see Peter. 

The use of office space will be changing during the coming months.

I think different areas will see different results.  I am a builder and have worked from home vs a commercial space my entire career.  My late wife who was an agent always had an office and I see that remaining the case in this market.

Adjustments will be made. 

Change is inevitable ... a constant in so many ways.

It takes 66 days to form a new habit . Practice makes Permanent !!!

Peter ~ I think that there will be an impact to office buildings, second only to retail space.  If the business can reduce it's office foot print and lease costs, while allowing workers to remove their commute time/frustration... why wouldn't they?  Now the velocity of this change is what I am curious about, as companies could use shared work space with alternating days/weeks in the office.

As long as workers are productive working from home there will be a drive to allow more tele-work in my opinion.

Lots of talk about return of the office cubicle as enforced social distancing in workplace.  Also automating public spacees "to mitigate contagion via touch-less technology—automatic doors, voice-activated elevators, cellphone-controlled hotel room entry, hands-free light switches and temperature controls, automated luggage bag tags, and advanced airport check-in and security." How the COVID-19 Pandemic Will Change the Built Environment

As for people, they will return to how they were in a NY minute, because they are human.  They will revert to acting human when this is over...

while a new level of caution and sensititivity to client needs.

I am very concerned for the commercial real estate industry as so many businesses are realizing that they can function without the extra cost of a building.