For those wondering, as many have, what impact work from home will ultimately have on office properties, Moody's says that it's not going away.
They constructed a number of scenarios to project vacancy rates. "For the lowest case of WFH demand reduction, 12% less demand, vacancy peaks at approximately 22.5% in 2026. The larger demand reductions of course produced more dire estimates coming in at 26.2% and 28.4% for the 20% WFH and 25% WFH rates," they wrote.
The lowest scenarios of 12% and 14% work from home demand reduction less demand were in line with trends Moody's is already seeing. The highest scenarios of 20% and 25% seem too high.
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