Remote work projected to wipe out hundreds of billions in office property values by 2030

Demand for office space could fall 13-38% in major cities by 2030 compared to pre-pandemic levels, according to McKinsey.
McKinsey estimates $800 billion worth of office real estate value could be wiped out across 9 major cities, with San Francisco facing especially steep declines.
The shift to remote work is causing more people to migrate away from city centers, further reducing office demand.
Tenants are negotiating shorter office leases, making it harder for landlords to secure financing.
Commercial real estate firms face declining property values due to higher vacancies, remote work, and rising interest rates.