The office market is currently in a divide between prime and secondary office buildings that will continue to widen in 2023. Demand for the best buildings in attractive locations will support rent growth in top-tier office towers. By contrast, there will be a smaller pool of tenants interested in older office buildings. As hybrid working remains desired, building owners will continue to look for ways to optimize their portfolios.
“We’re going to continue to see technological advancements being used in the office that really helps provide this seamless experience between people who are working in the office and meeting with clients that are in other locations. It’s going to be technology that helps people work together wherever they are. It’s less about me space and it’s more about we space – that’s what we continue to hear. It’s less space for desks, it’s not as much about cafes, it’s really about those meeting rooms and the technology that helps people get work done in a collaborative way.” – CBRE’s Head of Office Research, Jessica Morin