NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
Office Property Trends
Google Paying $500M to Reassess Real Estate Footprint Globally (SF Gate, Feb. 9, 2023)
“Many of the lease terminations will be in the Bay Area. “We’re ending leases for a number of unoccupied spaces, and will work to consolidate under-utilized spaces in the future," Google spokesperson Ryan Lamont wrote SFGATE in an email. "Our campuses remain a cornerstone of our culture, but we’re working to ensure we invest in real estate efficiently and that our investments match the current and future needs of our hybrid workforce.”
Loans Coming Due, Lease Expirations Spell Trouble for Office Market: Report (Commercial Observer, Feb. 9, 2023)
“Fixed-rate loans on office buildings coming due in 2023 “are maturing at what could end up being the peak of the [Federal Reserve’s] current tightening cycle; as a result, the loan interest rate will be significantly higher,” Trepp’s analysts wrote. “The interest rate sticker shock, combined with the possibility of a recession, could translate into an extremely challenging environment for these borrowers. The debt service burden for many of these loans will likely increase 40 to 60 percent.”
America’s Offices are Now Half-Full. They May Not Get Much Fuller (The Washington Post, Feb. 4, 2023)
“Overall growth in office occupancy has begun to level off in recent months despite efforts by many bosses to get workers back more often, according to data tracked by Kastle Systems. Last week, office occupancy across the country’s top 10 metro areas edged up to 50.4 percent of pre-pandemic levels, according to Kastle, which measures office activity through entry swipes.”
2023 Office Market Outlook: Optimal Space Utilization is Key (Forbes, Jan. 30, 2022)
“Two very different stories are playing out within the broader office market. Older buildings devoid of significant capital improvements have seen a substantial exodus since 2020, as described by Bloomberg. Now, landlords are forced to think outside the box to reinvigorate these legacy properties so they remain relevant in today’s market. Alternatively, I’ve observed brand-new or recently repositioned buildings in well-located areas following the “flight-to-quality” trend are generating healthy leasing activity and consistently improving daily occupancy.”
How Coworking Spaces Impact Employee Well-Being (Harvard Business Review, Feb. 9, 2023)
“We surveyed 819 employees working in office roles across the geographic and industry spectrum. Results showed, to our surprise, that respondents experienced working from a third space like a coworking site as more socially fulfilling than working from the office (64%) or from home (67%). One major reason is that a coworking space offers not just the flexibility employees crave in terms of where they work, but also with whom.”
As Remote Work Thrives, Coworking Takes Center Stage (Hospitality Design, Feb. 1, 2023)
“Layoffs and soaring interest rates plague the labor landscape, but hybrid work remains one of the few mainstays from our new normal, and the future of remote work looks promising. According to a recent study from professors at Columbia and New York University, the value of U.S. office buildings could plunge nearly 40 percent in the coming years.”
Miami Has become the Coworking Capital of the World (BisNow, Jan. 29, 2023)
Miami saw a 143% increase in demand for flexible office space last year compared to before the pandemic, according to The Instant Group. In 2022, coworking firms took 325K SF of Miami office space, according to CBRE data provided to Bisnow. That's more than in 2021 and 2020 combined and the third-most-active year on record.
Hybrid and Remote Work
How Hybrid Work is Changing the Future of Offices (The Wall Street Journal, Feb. 22, 2023)
Architects are increasing access to the outdoors, even in skyscrapers. More office buildings will include “touchdown” spots where visiting employees can log in and work, says Annie Draper, a director who specializes in flexible office spaces at Hines, a global real-estate developer based in Houston. At Deutsche Bank’s new Americas headquarters in New York City, designed by architecture giant Gensler, trading floors include lockers for hybrid employees, to help avoid lugging equipment back and forth.
Hybrid Working Set to Push US Office Vacancies to Record by 2030 (Financial Times, Feb. 21, 2023)
“Hybrid working will push US office vacancies 55 per cent above their pre-pandemic levels to a record 1.1bn square feet by 2030, according to a stark industry forecast that attempts to quantify the damage to the commercial property sector wrought by changing work patterns. The report by commercial real estate adviser Cushman & Wakefield found that 330mn sq ft of office space — roughly equivalent to all the office inventory in the Washington metropolitan area — would be made redundant by hybrid or remote working by the end of the decade. That would come on top of another 740mn sq ft of space that it classified as “normal or natural” vacancy.”
Office Trends are Being Swayed by Employee Desires in Pursuit of Retention (Dayton Business Journal, Feb. 9, 2023)
“People are really going to have to understand their culture and demographic,” Blake said. “They're going to have to envision, ‘What is our employee that really works in our environment, culture and skill set?’” Right now, Blake said he still sees a wide gap between what the average employee desires in a hybrid environment and what the average manager would want. He thinks it will take some time to be worked out as business owners navigate the new trends post-pandemic in a recovering economy.”
ccim.com — Commercial Investment Real Estate Institute
irem.org — Institute of Real Estate Management
sior.com — Society of Industrial and Office REALTORS®
boma.org — Building Owners and Managers Association
crewnetwork.org — CREW
naiop.org — National Association of Industrial and Office Properties
uli.org — Urban Land Institute
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
How to Design and Build a Green Office Building (eBook)
The New Corner Office (Audiobook)
Office Building Safety and Health (eBook)
Office Markets and Public Policy (eBook)
Out of Office: Unlocking the Power and Potential of Hybrid Work (eBook)
Retrofitting Office Buildings to be Green and Energy Efficient (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Income/Expense Analysis: Office Buildings (Chicago, IL: Institute of Real Estate Management, 2018) HD 1394 In7i
The Energy Wise Workplace: Practical and Cost-Effective Ideas for a Sustainable and Green Workplace (Lanham, MD: Rowman & Littlefield, 2017) HD30.255 .D66 2017
The Valuation of Office Properties: A Contemporary Perspective (Chicago, IL: Appraisal Institute, 2009) HD1393.58.U6 S55 2009
Lease Guide: Guide to Writing a Commercial Real Estate Lease Including Green Lease Language (Washington, D.C.: BOMA International, 2008) HD 1384 T23
Office Building Management (Chicago, IL: Institute of Real Estate Management, 2002)
Mastering Office Leasing: A Practical Guide (Washington, D.C.: Society of Industrial and Office Realtors, 2000) HD 1384 So1m
Green Office Buildings: A Practical Guide to Development (Washington D.C.: Urban Land Institute, 2005) NA 6230 G74
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