The work-from-home trend, among other pressures on the office sector, has compelled investors to transform their empty office space to a more modern environment for office workers, convert office space to a different use or tear down obsolete buildings. In his report, “The office renaissance: Adapting to a new era,” which was published in the April issue of Institutional Real Estate Europe, Olafur Margeirsson, head of Real Estate Research & Strategy – Europe ex-DACH, with UBS Asset Management, Global Real Assets, says investors and city planners need to change their thinking about the sector, citing 5.6 million square meters of office space sitting empty in the Paris region, while at the same time, rents for prime, centrally located offices in certain areas of Paris have risen significantly since COVID-19. “The right types of offices are in short supply, and tenants are willing to pay for them if they meet their evolving needs,” says Margeirsson.
