Global office demand could drop by between 10% and 20% as companies continue to develop policies around hybrid work arrangements, a Barclays analyst recently stated on CNBC.
Long-term leases have propped up the office market since the Covid pandemic struck. When those leases expire, companies will have the option of reducing the amount of office space they rent.
With two years of experience managing remote work environments enabled by technology advances, companies looking to cut costs have more confidence to trim real estate commitments. Class A properties in good locations are the most desirable, and are well poised to retain tenants.
Older office buildings and those in less desirable locales, on the other hand, may be challenged to hold onto tenants and attract new ones.
Related Stories
Market Data | Nov 3, 2021
One-fifth of metro areas lost construction jobs between September 2020 and 2021
Beaumont-Port Arthur, Texas and Sacramento--Roseville--Arden-Arcade Calif. top lists of gainers.
Market Data | Nov 2, 2021
Construction spending slumps in September
A drop in residential work projects adds to ongoing downturn in private and public nonresidential.
Hotel Facilities | Oct 28, 2021
Marriott leads with the largest U.S. hotel construction pipeline at Q3 2021 close
In the third quarter alone, Marriott opened 60 new hotels/7,882 rooms accounting for 30% of all new hotel rooms that opened in the U.S.
Hotel Facilities | Oct 28, 2021
At the end of Q3 2021, Dallas tops the U.S. hotel construction pipeline
The top 25 U.S. markets account for 33% of all pipeline projects and 37% of all rooms in the U.S. hotel construction pipeline.
Market Data | Oct 27, 2021
Only 14 states and D.C. added construction jobs since the pandemic began
Supply problems, lack of infrastructure bill undermine recovery.
Market Data | Oct 26, 2021
U.S. construction pipeline experiences highs and lows in the third quarter
Renovation and conversion pipeline activity remains steady at the end of Q3 ‘21, with conversion projects hitting a cyclical peak, and ending the quarter at 752 projects/79,024 rooms.
Market Data | Oct 19, 2021
Demand for design services continues to increase
The Architecture Billings Index (ABI) score for September was 56.6.
Market Data | Oct 14, 2021
Climate-related risk could be a major headwind for real estate investment
A new trends report from PwC and ULI picks Nashville as the top metro for CRE prospects.
Market Data | Oct 14, 2021
Prices for construction materials continue to outstrip bid prices over 12 months
Construction officials renew push for immediate removal of tariffs on key construction materials.
Market Data | Oct 11, 2021
No decline in construction costs in sight
Construction cost gains are occurring at a time when nonresidential construction spending was down by 9.5 percent for the 12 months through July 2021.
