Please raise your hand if you hate commuting. Now… keep your hand up if you feel that life would be significantly better with an extra hour per day to do the things you actually enjoy. Wow, that’s a lot of hands (yes, I can see you through your webcam!). My point here is that it is a universally proven fact that commuting long distances to work is no fun, and we are at a point with technology that we’d rather work an extra 30 minutes per day from a virtual office at home than waste our lives away in traffic on the road.
I’m sure you’re thinking, well that’s great, Greg, but how does this relate to residential real estate in Southern California? As technology continues to improve and we millennials start working our way up the corporate ladder, I predict that there will be more and more of the workforce working from a virtual office.
When employees are allowed to work from home, it begins to open up their living options, as they no longer have to worry about distance to their office when considering potential jobs. Therefore, I believe that more and more people will flock to regions that have exceptional weather and an unrivaled quality of life. Think about it, why would you live in Phoenix if you could keep your same job and live in San Diego? (Sorry Zonies, I still love you). Of course affordability will always be an issue when moving to a “more desirable” city, but for those that can afford it- it’s a no brainer.
My final thought on the subject regards how this may not only affect the residential real estate market in America’s finest city, but the commercial real estate market for office space as well. Not all employment positions can be as effective from home, therefore not everyone will be able to work from a virtual office, but you have to think that this changing dynamic will play a role in the future demand for commercial office space. Current trends in occupancy for office space in San Diego are positive, as vacancy continues to fall and asking rents continue to rise. It will be interesting to see how these trends change as the mobile workforce becomes more and more prevalent.
It’s no secret that commercial office space is VERY expensive, and that may play a role companies choosing to downsize their office footprint and allow more employees to work out of the comfort of their homes or local coffee shops. We are always running around all over Southern California so tying ourselves to a commercial space doesn’t make sense. Because of this we are living the dream of being a 100% a mobile workforce. We enjoy handling back end work from home or posting up at Pannikin in La Jolla Village or Lofty Coffee in Solana Beach. Getting outside and meeting others while saving a few precious bucks is a win in our book. Until next time, folks. Cheers!
About the Author
Greg Robertson is a Broker at Class Realty Group’s San Diego office. Reach him by email at firstname.lastname@example.org or by phone at 858-333-2422.