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Q1 2023 The Fall Out Accelerates and a Flight-to-Quality Sets In.

The Office Market

creative office space - q1 2023

Market Trends

For over three years, I’ve been telling my clients, “we still don’t know” regarding movements and trends in local, regional, and national office markets. They were tired of hearing it, and so was I. However, in Q1 2023, significant changes began. Rate hikes, non-repayment of debt, uncertainty, weak markets, rapid vacancies, and highly discounted asset trades have surged in the last 60 days. The anticipated shifts in the office market are now happening quickly.

Tenant Preferences

Tenants are now opting for less space but are moving into Class B+ and Class A buildings with better locations and amenities.

Market Variability

The market varies significantly even within short distances. This means rates, deal structures, concessions, competition, suite sizes, and landlord appetites differ widely.

Work-from-Home Dynamics

Work-from-home is now in its fourth year, and new company and community cultures are emerging. How tenants and companies operate in this new world is highly situational, influenced by factors like culture, leadership, worker demographics, and office design.

Knowledge is Key

In tenant representation, knowledge is crucial:

  1. Building-to-building
  2. Broker-to-broker
  3. Landlord-to-landlord
  4. Local area-to-local area

Looking Ahead

We know these emails are brief, and we hope they are appreciated. In our next piece, we’ll highlight how some companies are redefining office use, design, function, and vibe.

A changed workplace? Ernst & Young thinks so.

As people have adapted to “the new normal”, it’s become clear that the norms of the past were in fact problems.

The number of the select few trusted people that worked from home has now exploded due to the Coronavirus.   For how long, nobody knows, but we are all doing life differently. Now, more people than ever before have been able to experience what it is like to carry out their role from the comfort of their own home or any various combinations between the home, office and with clients.

Read More

Welcome to the 2nd generation of Creative Office

What is the New Creative Office:

It’s a dramatic shift because space has become smaller & smarter.  Studios and team-based environments was new amenities and common areas.

Let’s start with the tangibles !  Creative Office Space is not just open collaborative space and natural light.  It’s not huddle rooms, stand-up desks and smart technology.

Efficient design and new technology allow concepts like hot-desking or hoteling .  Employees in the field don’t need a permanent cubicle or office. Even the top company performers state the benefits can outweigh a traditional office.

Workers value camaraderie, time-savers and positive energy as benefits of a modern open work environment.

In the end, the new creative office is more expensive with furniture systems, new design and technology.

Who is doing it ?

And,  it’s not just for millennials (ages 24-38) .  Varying industries are experimenting are transitioning, and you’ll see it in administration, engineering and technology.  Paramount importance is given to attracting and retaining talent.

Impress & Retain Workers

Well designed spaces can make a lasting impact recruiting and talent retention.  It differentiates you from the competition.