McKinsey estimates that the rise of telecommuting will reduce the value of office buildings in major cities around the world by $800 billion by 2030.

CTOnews.com, July 13 (Xinhua)-- the shift to telecommuting could cost the value of office buildings in major cities around the world $800 billion by 2030, according to a study released by consulting firm McKinsey. (CTOnews.com Note: currently about 5.74 trillion yuan).

▲ source Pexels McKinsey surveyed nine "superstar" cities-Beijing, Houston, London, New York, Paris, Munich, San Francisco, Shanghai and Tokyo-and found that by 2030, demand for office space in these cities will be about 13% lower than it was before the outbreak.

McKinsey says "superstar" cities are those that account for a large share of the world's GDP and GDP growth.

The survey also said that employees still spend much less time in the office than they did before the outbreak. Telecommuting seems to have encouraged people to stay away from major cities, in part because suburban housing is cheaper and people are getting used to the full home-working model.

After the outbreak, many tenants have reduced their office space, and some companies have switched to a permanent mixed mode of work. Falling demand has prompted tenants to negotiate shorter leases with landlords, but short-term leases may make it harder for landlords to obtain financing, according to the McKinsey report.

In addition to the rise in vacancy rates, global commercial property companies face a sharp decline in their property valuations as soaring borrowing costs in a high interest rate environment force investors to look for more profitable ways.