The future of office: Looking beyond work-from-home challenges

The future of office: Looking beyond work-from-home challenges

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Leonard Geiger, CFA

Portfolio Manager, Europe Real Estate

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1 minute read

October 2021

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We believe hybrid work policies will likely impede office rent growth over the next several years, but it’s important not to paint all markets with the same broad brush.

  • Remote work impact
    Work from home is affecting regions and industries differently, creating select value opportunities.
  • Greater workplace flexibility
    Work from home is about more than the pandemic, driven by preferences for greater workplace flexibility that could have lasting implications for office utilization.
  • Better positioned properties
    Regardless of the city, companies that own newer properties offering environmentally friendly features and modern amenities are likely to see better demand and stronger rent growth.

While the global office sector is likely to remain under pressure in the near term, we believe investment opportunities may continue to emerge in select markets, underscoring the importance of active portfolio management.

ABOUT THE AUTHORS
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Leonard Geiger, CFA, Senior Vice President, is a portfolio manager and a senior research analyst who oversees the research of the office and residential sectors in Europe.

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Alec Overby, CFA, Vice President, is a real estate securities senior research analyst covering the office and regional mall sectors.

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