Office market adjustment to alternative workplace strategies

Regional CGE models have been a valuable tool for regional development and regional policy analysis and can have valuable applications in real estate analysis as well. This paper describes the Colorado Real Estate (CO-RE) Computable General Equilibrium (CGE) model and its application to the analysis...

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Main Author: Christopher Hannum
Format: Article
Language:English
Published: Mehmet Topcu 2024-12-01
Series:Journal of Design for Resilience in Architecture and Planning
Subjects:
Online Access:https://drarch.org/index.php/drarch/article/view/261
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author Christopher Hannum
author_facet Christopher Hannum
author_sort Christopher Hannum
collection DOAJ
description Regional CGE models have been a valuable tool for regional development and regional policy analysis and can have valuable applications in real estate analysis as well. This paper describes the Colorado Real Estate (CO-RE) Computable General Equilibrium (CGE) model and its application to the analysis of the impacts of alternative workplace strategies (AWS) such as office hoteling on regional property markets and the regional economy. AWS, modeled as a productivity-enhancing “technological” improvement that reduces firms’ office space requirements, is shown to spur investment in non-office sectors through a positive impact on local economic growth. The impact on local government finances may be negative due to falling office property values. The impact of a sudden, permanent drop in underlying demand for office space by office-using sectors includes dramatic if sluggish decreases in rents and increases in office vacancy.
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institution Kabale University
issn 2757-6329
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publisher Mehmet Topcu
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series Journal of Design for Resilience in Architecture and Planning
spelling doaj-art-99522b565b88497eb6b99a0ec8b1a09c2024-12-31T11:44:01ZengMehmet TopcuJournal of Design for Resilience in Architecture and Planning2757-63292024-12-015(Special Issue)011710.47818/DRArch.2024.v5si146264Office market adjustment to alternative workplace strategiesChristopher Hannum0https://orcid.org/0000-0001-8298-4725University of Central AsiaRegional CGE models have been a valuable tool for regional development and regional policy analysis and can have valuable applications in real estate analysis as well. This paper describes the Colorado Real Estate (CO-RE) Computable General Equilibrium (CGE) model and its application to the analysis of the impacts of alternative workplace strategies (AWS) such as office hoteling on regional property markets and the regional economy. AWS, modeled as a productivity-enhancing “technological” improvement that reduces firms’ office space requirements, is shown to spur investment in non-office sectors through a positive impact on local economic growth. The impact on local government finances may be negative due to falling office property values. The impact of a sudden, permanent drop in underlying demand for office space by office-using sectors includes dramatic if sluggish decreases in rents and increases in office vacancy.https://drarch.org/index.php/drarch/article/view/261office marketreal estatecomputable general equilibriumremote workalternative workplace strategies
spellingShingle Christopher Hannum
Office market adjustment to alternative workplace strategies
Journal of Design for Resilience in Architecture and Planning
office market
real estate
computable general equilibrium
remote work
alternative workplace strategies
title Office market adjustment to alternative workplace strategies
title_full Office market adjustment to alternative workplace strategies
title_fullStr Office market adjustment to alternative workplace strategies
title_full_unstemmed Office market adjustment to alternative workplace strategies
title_short Office market adjustment to alternative workplace strategies
title_sort office market adjustment to alternative workplace strategies
topic office market
real estate
computable general equilibrium
remote work
alternative workplace strategies
url https://drarch.org/index.php/drarch/article/view/261
work_keys_str_mv AT christopherhannum officemarketadjustmenttoalternativeworkplacestrategies