COVID-19 came on the heels of a glut of office construction in some markets. Now that the realities of the pandemic have sunk in, attention is turning to what will become of that excess inventory.
"You look at San Francisco, and there has definitely been a boom in office construction in the last decade," says Nima Wedlake, principal at Thomvest Ventures. "For the most part, those offices are getting leased up before construction is completed. The Salesforce tower was getting leased at record-high rates."
But the tech companies in San Francisco are letting workers telecommute well into 2021, if not permanently. "Outside of our interest in real estate, we have a portfolio of technology companies, many of whom are based in San Francisco," Wedlake says. "Every single one has announced a work-from-home policy that will extend into 2021. I think that's table stakes at this point."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
