The software provider Salesforce (CRM) has announced it will extend remote work policies beyond the time frame of the pandemic. According to Chief People Officer Brent Hyder, a majority of the firm’s 54,000 global employees may continue to work from home part-time or even full-time.
The San Francisco based specialist for Customer Relationship Management plans to downscale its real estate ownership and redesign office layouts. New co-working concepts are aimed to provide more space for collaboration and hybrid work.
Salesforce, among other tech companies which embrace plans for long-term remote work, is increasing pressure on the real estate markets of technological hubs. The Bay Area will be particularly impacted by the new strategic plans of their biggest tenants.
Announcements such as these may provide a second wind to beneficiaries of the changing work paradigm, including “work from home” stocks, such as Zoom Video (ZM). However, it spells trouble for office landlords in major cities. If an economic recovery doesn’t mean a return to in-person work, skyscrapers that were once the crown jewels of their portfolios could become major drags on performance.