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Office is heading for a gradual recovery, with 2024 said to be the transition period that finally brings the industry closer to post-pandemic norms. According to Commercial Edge's latest Office Report, domestic vacancy rates will continue to rise in 2023, with Class B and C properties particularly struggling. To date, demand remains high for well-designed, high-quality facilities in prime locations.
Several structural trends are polarizing the market. Commercial Property Executive (CPE) spoke to industry veteran Glenn Brill, managing director of FTI Consulting, as he shares insights on the first episode of his series on this year's FTI Experts' Hub quarterly podcast. I requested it. In a conversation with CPE Senior Editor Laura Calugar, Glenn talks about the trends he's seeing in the market and how they'll evolve.
Time breakdown of main topics covered:
- The gap between major offices and other offices is widening (0:47)
- Flight to quality (4:06)
- How much impact will outdated office space have on the market? (6:27)
- The role of proptech in rebuilding real estate and bringing old properties back to life (7:20)
- Is it possible to fully return to the office in the future? (10:51)
- Impact of remote work on the office market (12:41)
- What kind of companies are using offices now? (15:13)
- Small-scale residences and coworking (16:46)
- Large Occupiers/Corporate and Coworking (18:24)
- What do tenants want from a rental agreement? (20:16)
- Company relocation (22:05)
- Who will be the winners and losers in the medium to long term? (24:01)
