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 | May 1, 2020
Nonresidential construction spending declines in March as pandemic halts projects
Group warns loan threats are hurting relief program.
Market Data | May 1, 2020
6 must reads for the AEC industry today: May 1, 2020
DLR Group completes LA Memorial Coliseum renovation and over 50% of department stores in malls predicted to close by 2021.
Market Data | Apr 30, 2020
5 must reads for the AEC industry today: April 30, 2020
College programs help prepare students for careers in the construction industry and a national movement to cancel May rent takes shape.
Market Data | Apr 30, 2020
The U.S. Hotel Construction pipeline continued to expand year-over-year despite COVID-19 in the first quarter of 2020
Many open or temporarily closed hotels have already begun or are in the planning stages of renovating and repositioning their assets while occupancy is low or non-existent.
Market Data | Apr 29, 2020
5 must reads for the AEC industry today: April 29, 2020
A new Human performance Center and Construction employment declines in 99 metro areas.
Market Data | Apr 29, 2020
Construction employment declines in 99 metro areas in March from 2019
Industry officials call for new state and federal funding to add jobs.
Market Data | Apr 28, 2020
5 must reads for the AEC industry today: April 28, 2020
A virtual 'city-forest' to help solve population density challenges and planning for life in cities after the pandemic.
Market Data | Apr 27, 2020
5 must reads for the AEC industry today: April 27, 2020
Colleges begin building campus eSports arenas and PCL Construction rolls out portable coronavirus testing centers.
Market Data | Apr 24, 2020
6 must reads for the AEC industry today: April 24, 2020
Take a virtual tour of Frank Lloyd Wright's Robie House and Construction Contractor Confidence plummets.
Market Data | Apr 23, 2020
Construction Contractor Confidence plummets in February
As of February 2020, fewer than 30% of contractors expected their sales to increase over the next six months.
