The bearish view of the office sector
U.S. bankers are planning to cut back on real estate to prepare for a world in which fewer workers make a daily commute to the office. Roughly 61% of bank executives surveyed by Accenture said they don’t expect all of their employees to be called back to the office, and more than 40% said they plan to reduce their real estate footprint as a result of the coronavirus pandemic and their new workforce strategies.
- Time will tell: Many financial-services firms are considering a hybrid model in which employees come to the office three days a week and work from home the other two, according to Accenture. (Bloomberg)
- Summer Rise in Covid-19 Hot Spots Derailing Hotel Recovery: Owners of hotels in Florida, Texas, Arizona, and California thought the worst of the pandemic was behind them, but a surge of Covid-19 cases in those states is spoiling any near-term recovery hopes. The poor performances of the hotel markets in the states that suffered new outbreaks helped drag down the U.S. lodging industry. National demand was rising at an average clip of 8.3% a week between the week that ended April 18 and the one that ended June 13. Between the weeks that ended June 20 and July 11, demand rose only an average of 2.9% a week. (WSJ)
- Home insurance startup Hippo raised $150 million in a new round of funding, bringing its valuation to $1.5 billion. The startup relies on existing insurance companies and takes a commission from policies granted through the platform. With software and technology, Hippo seeks to bring efficiency to the antiquated insurance process. The company’s chief competitor, Lemonade, recently went public and saw its stock surge – it has a market cap of $4.44 billion. (Crunchbase)
- MeetElise, a leasing agent software that seeks to streamline residential leasing processes, announced their $6.5M Series A financing led by Navitas Capital. (BusinessWire)
- Knotel is struggling to raise $100 million to survive. (Forbes)