How Remote Work is Affecting the Commercial Real Estate Workforce

Telecommuting, now known as remote work, was a term coined in 1973 by Jack Nilles, a NASA engineer, in his book Telecommunications-Transportation Tradeoff. By the mid- to late 80s, more than 300 companies had adopted some practice of telecommuting, and in 2000, the United States Department of Transportation Appropriations Act legitimized remote work and mandated companies to create telecommuting policies. Long before COVID-19, advances in technology and modern corporate policies were impacting the number of employees across industries who could work remotely. 

In 2020, the National Association of Realtors (NAR) reported that 62% of commercial real estate (CRE) professionals were working remotely due to the COVID-19 pandemic, and this shift caused most of these remote professionals to experience a 5-7% decline in transaction activity. More significantly, CRE professionals forced to work remotely during the pandemic experienced a notable decline in their ability to conduct larger transactions of $2.5 million USD and higher—deals that historically require "face time" to build and maintain trusting relationships with clients and colleagues that facilitate these larger transactions. 

While there are benefits to remote work, including more flexibility in accommodations for workers with disabilities or caregiving commitments, the cons of remote work include a decline in company culture, lack of mentorship for new employees, loss of productivity for those who struggle to manage their time effectively, and challenges for both clients and service providers to adapt to new technology.  

Forbes reported that there are considerable concerns raised regarding new employees who are being hired in the industry and working in a remote environment. While there is an upcoming generation that is used to the digital world, there is still much to be said for the human interaction and mentorship that comes from working in person together. In an industry like CRE, hands-on transaction experience champions what can be taught in an online classroom.  

In a post-pandemic, remote-work-focused recruiting environment, what can CRE companies do to recruit and retain new employees? According to a survey by LinkedIn, 94% of job seekers are attracted to companies that invest in their professional growth by offering new employees training opportunities, a mentorship program, and other professional development resources.  

To the extent that companies can successfully do so remotely, they may see results in the quality of candidates they can attract. However, nothing can replace a human-to-human invested interest in the career development of another. If CRE firms want to recruit and retain employees, a vibrant workplace culture and personal career development opportunities remain key. 

References 

Gupta, A. (2023). SIWOM: The History of Working Remote: How it came to be what it is today.  

Morgan, P. (n.d.). A Remote Work Model Challenges Employers and Employees. Forbes.  

Cororaton, S. (2020). Small Shoots of Recovery in Commercial Real Estate Transactions Q3 2020: An Economist’s Outlook.

LinkedIn. (2023). 2023 Workplace Learning Report: Building the Agile Future – Putting People and Skills at the Center of Organizational Success.