Office market will see trend toward flexibility
The future of office space is flexibility — but that may not mean a decline in demand. Despite the uncertainty from remote work and a reduction in bank lending for office space causing a liquidity crunch in the space, there may be investment opportunities in the next year or two.
“It’s always challenging to forecast how capital market conditions will change, but for now we believe there are attractive tactical investment opportunities in the office sector, even when using negative economic and remote working assumptions,” says William Pattison, managing director, head of real estate research and strategy at MetLife Investment Management.
“There has been a battle between employers and employees over remote working,” notes Pattison. “If labor markets soften, the balance of power could shift toward employers. This could lead to an acceleration in the return to office.”
One feature of the current investment landscape has been a bifurcation between cl