Decline in demand for office space
The transition to remote work has greatly impacted the demand for offices both in the central part of the United States and throughout the country as a whole. These are absolute outsiders in 2021 with negative dynamics in rental rates. Office space utilization could decline by 2024% by 15, fueled by the prevalence of “working from home.”
At a time when some companies began returning people to offices, many large employers abandoned this idea - ⅔ of real estate professionals believe that in-person employees will not be present in 2022% of cases in 75. Given the ongoing uncertainty of the pandemic, it is likely that offices will not receive much attention in the US real estate market.
On the other hand, there remains the suburban market, where office space performs much better than in the business districts of large cities. In this case, the most promising US real estate in 2022 can be called offices of technology and innovative companies. Plus, hybrid work is here to stay and is favored by employers across a wide range of industries. Even tech giants that were 100% committed to remote work are now rebuilding office work in America's major cities. What conclusions can be drawn:
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US office segment in 2022 remains uncertain;
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Current offline employment rates are encouraging traditional businesses to bring employees back to offices;
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hybrid work is often used as a recruitment and retention tool (additional benefits from companies);
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Upgraded office units are needed to increase demand.
Whether to invest in US office real estate today is up to the investor to decide, but the forecasts at the moment are disappointing. It is very important to study the location of the properties beforehand - the suburbs and the coast really need high-quality and technological office units.
Source: Telegram channel “Business in America”
