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