CommercialEdge, Santa Barbara, Calif., reported tech companies have been laying off workers and downsizing their office footprints to cut costs, which could make the office sector’s recovery even harder.
Tag: Office Sector
Colliers: Hybrid Work Will Shrink Office Space Requirements, Lead to Better Work/Life Balance
Colliers, Toronto, reported hybrid work will lessen office space requirements for many corporate users and could better work/life balance for workers.
Office Sector’s Future Up for Debate
Colliers International, Toronto, said the U.S. office market is stabilizing following two-plus years of pandemic-driven correction, but noted “considerable debate and speculation” about its future.
CBRE: Tech Industry Office Leasing Activity Slows, Remains Leading Force
CBRE, Dallas, said the tech industry’s share of U.S. office leasing slipped in first-half 2022 to its lowest figure in five years, though it remains a leading force in the sector.
The Office Sector Paradox
Office-using employment increased this year, but office absorption remains negative, reported Cushman & Wakefield, Chicago.
Economic Uncertainty, Remote Work Challenge Office Sector
Despite five interest rate increases in 2022, inflation remains near multi-year highs. This could hit the office sector harder than other property types, said KBRA, New York.
Bright Spots Amid Offices Sectors Struggles
Office absorption remains negative even though office-using employment increased by 1.9% in the first half of the year, adding 635,000 jobs, reported Cushman & Wakefield, Chicago.
CBRE: Office Lease Rates Highlight Flight-to-Quality Trend
CBRE, Dallas, said office rental trends indicate a “flight to quality” playing out across 12 major U.S. markets as companies adapt their workplaces for hybrid work.
‘Murky’ Office Sector Outlook
CommercialEdge, Santa Barbara, Calif., called the office sector’s future “murky,” even now, well over two years since the COVID-19 pandemic started.
Colliers: Office Market Recovery Pauses
Colliers, Toronto, reported the office market paused in the first quarter following two quarters of occupancy gains. But the overall trend points toward stabilization, the firm noted.