In the face of pandemic reverberations and economic headwinds, the office asset class has seen its fair share of challenges these past few years. But offices aren’t leaving the picture – they’re evolving as an asset class and steadily attracting a groundswell of new demand. Crexi’s COO Eli Randel published an article in Global Banking and Finance Review on why investors should stay bullish on offices, along with key trends to track.
Key takeaways are:
- Office decentralization drives new CRE needs. Digital tools that enable remote collaboration are not eliminating the need for physical coworking – they’re enabling companies to evolve their footprint into a “hub and spoke” model of satellite offices.
- Businesses are putting flexibility first. Hybrid workflows still value the in-office experience as essential. What’s new are the changing demands in workplace density, amenities, and technical infrastructure.
- With low supply and minimal development, opportunities are available for investors with cash on hand to enter the space before demand rockets again.
- In a cyclical economy, a fundamental asset class like office won’t be erased. It’s a vital part of the national landscape and culture.