Value-add office is back in favor, up sharply from 2020 levels
Throughout the majority of the pandemic, office investors were widely driven by a flight-to-quality, as those assets offered the most resilience amid demand uncertainty, according to JLL. While core and core-plus office properties are still in favor, value-add liquidity is quickly recovering, as clarity surrounding rent growth and the future of office demand improve.
While questions remain surrounding the impact of hybrid work on office demand, the majority of corporate occupiers have signaled that the office will remain the center of the work ecosystem. A physical office reinforces culture, drives collaboration and innovation, enables professional growth and brings a company’s best to its clients and employees. Hybrid work will have a durable presence, but the net impact on space usage and footprints will be relatively minor, according to JLL. Leasing activity supports this thesis, nearly surpassing 40 million square feet in the third quarter 2021 for the first time since