CBRE’s 2022 US office occupier sentiment survey highlights return to office strategies and how companies are proving the value of the office to their employees. The comprehensive report outlines key trends taking shape such as hybrid working, sustained flexibility, growing demand of flexible office space and ESG.
Better building features, such as connected technologies and building applications, outdoor amenities, indoor air quality and flexible office space, are in-demand. Landlords are shifting their focus to operational real estate strategies that fall in line with tenant requirements for flexibility, experience and tenant satisfaction. Many are partnering with occupiers to enhance the office experience as a key driver for attracting and retaining talent.
Read all of the trends here.
Instant Offices’ US report highlights how flexible workspace is facilitating new real estate strategies. Business relocation and hybrid working are driving up demand for this asset class.
Instant cites a 58% increase in demand for flex across the US. Since the pandemic new business hubs are emerging in the US outside of the standard hotspot cities. Miami, Tampa and Houston are among these emerging business hubs, which are even outpacing traditional commercial hotspots like New York and San Francisco.
Flexible workspace is an enabler for companies to be creative with their real estate strategies. Instant predicts that flex supply will diversify to stay aligned with changing occupier requirements beyond just the space component, but wellness sustainability and experience as well.
The end of 2021 shaped up to be positive for the US office market. In spite of the on-going pandemic, leasing activity rose by 9.2% in the 4th quarter, bringing it 14.6% above 2020 rates. JLL’s Q4 report highlights leading activity in southern markets such as Atlanta, Austin, Dallas and Miami, noting however, that larger cities continued to lag.
Leases for large commercial assets over 100,000 sq. ft grew by almost 50% and represented 44% of total activity. Deals longer than 10 years also rose for four consecutive quarters to approximately eight years on average. The report notes the exceptional performance of new buildings delivered since 2015, a strong indicator that occupiers value the quality of newly constructed offices.
Learn more about IDC’s framework and building blocks for Best-in-Class workspaces to align your strategy to today’s shifting market trends.