Offices tenant accelerate bifurcation between space that works or doesn’t work

The U.S. office sector is facing an unprecedented imbalance in supply and demand — one that will result in more than 330 million square feet of vacant space by the end of the decade brought on by the impacts of the hybrid work environment, according to Cushman & Wakefield.

Demand for office product that can accommodate modern-era tenant preferences and sustainability features, and provide a high-quality, strong in-person experience has shifted dramatically higher, while demand for mediocre, lower-quality, older commodity office product has shifted dramatically lower. This imbalance in demand is further exacerbated by the supply side, where upwards of 70 percent of the nation’s office stock was built before 1990 and does not match the preferences of today’s occupiers. Further, as leases expire, the office product that has not adapted to changing demand could become obsolete. These shifting demand dynamics have accelerated the bifurcation between the office buil