The Bright Side of Office: Opportunities in the Urban Core
31 Janvier 2024 - 4:00PM
Business Wire
Demographic shifts, occupier demand, and employment forecasts
bode well for the future of the office
Cushman & Wakefield today released a new report, The Bright
Side of Office: Opportunities in the Urban Core. The report
explores some of the optimistic factors working in favor of office
space in North American urban centers.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240131116370/en/
1. The population out-migration trends in
large cities that accelerated early during the pandemic are
returning to long-term norms. (Photo: Business Wire)
“Cushman & Wakefield has not been naïve about the current
state and future of office in North America. Rather, the company,
dating back to 2020, recognized that increased remote work would
create sustained impacts on occupier demand and that the nature of
office would need to evolve as a result,” said David Smith, Head of
Americas Insights, Cushman & Wakefield. “We also anticipated
that some portion of existing office stock would be obsolete, that
the glidepath to recovery would take some time and that owners
should be realistic about the outlook for 2024.”
Acknowledging those headwinds, this report examines several
positive factors that are working in favor of a recovering office
market.
- The population out-migration trends in large cities that
accelerated early during the pandemic are returning to long-term
norms. While the pandemic disproportionately impacted urban cores
of cities, some of the demographic shifts at the height of the
pandemic were temporary. Stated another way, people still want to
live in large, vibrant cities.
- The supply-side boom is quickly unwinding, and new office
deliveries will be historically low in the middle of this decade.
Top-tier office product is very much in demand. There is going to
be Less new construction will be delivered, however, welcoming
opportunities arise for renovated offices and assets slightly
further down the value chain.
- Occupiers have been right sizing their portfolios, but much of
the effects of increased remote and hybrid work environments have
filtered through the system.
Although increased remote and hybrid work is shifting occupier
demand, and reducing willingness of employees to commute, but much
of that impact has already filtered through the system. Portfolio
right-sizing will moderate in coming years. Occupiers are committed
to the office as a part of their business strategy, even if they
are offering more employee flexibility than they did five years
ago. The office is still a central part of the economy and a driver
of productivity, career development, culture and innovation.
Office employment declined in the second half of 2023; it is
still 1.9 million jobs above its pre-pandemic level. Once it
resumes growing, look for occupiers to need more office space for
their growing workforces.
“As we adapt and recover, we’re seeing some bright spots for
urban office markets,” said Smith. Occupiers and employees are
adjusting, supply is adapting, and the economy will create jobs in
the coming years.”
Click here to download the full report.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global
commercial real estate services firm for property owners and
occupiers with approximately 52,000 employees in approximately 400
offices and 60 countries. In 2022, the firm reported revenue of
$10.1 billion across its core services of property, facilities and
project management, leasing, capital markets, and valuation and
other services. It also receives numerous industry and business
accolades for its award-winning culture and commitment to
Diversity, Equity and Inclusion (DEI), Environmental, Social and
Governance (ESG) and more. For additional information, visit
www.cushmanwakefield.com.
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Mike Boonshoft 212-841-7505
Cushman and Wakefield (NYSE:CWK)
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