Originally published on February 2, 2024, by Hayim Mizrachi, CCIM, for NAIOP.
As we start a new year, the office outlook is still mixed. Although more companies are requiring employees to be in the office some days per week, we are far from the high occupancy that many central business districts enjoyed before 2020. Companies are still figuring out their workplace strategies – how often to bring in employees and how to better use their space for the reality of work today.
At the same time, financing and refinancing office loans for owners is increasingly difficult. Every margin matters: How the property is managed and what improvements can be made may be the difference that prevents a forced early sale.
So, in the near term, we must find a new equilibrium in how office space is positioned. My colleagues from CORFAC International offices around the world shared what they’re seeing in the office sector and how office owners and brokers need to respond.