More companies are embracing work from home. Downtown spending and CRE could suffer.

June 4, 2021

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Cleveland businesses begin to reopen offices for workers, May 20, 2021

By Andy Medici | Cleveland Business Journal

More companies are embracing work-from-home options for the long term, and the trend threatens to limit spending in downtowns and urban areas, particularly in the nation’s largest cities.

The new analysis of the impact of long-term remote work after the pandemic and its potential impact on cities comes from the University of Chicago’s Becker Friedman Institute for Economics, which found the post-pandemic work-from-home shift will lower spending on meals, entertainment, personal services and shopping, cutting spending in major cities by 5% to 10% of overall pre-pandemic spending.

It’s a big deal, according to Steven Davis, an economist and a professor at the University of Chicago who is one of the paper’s authors.

Read the full story on cleveland.com’s sister site, Cleveland Business Journal.

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