Last year, the delta variant imploded plans for a large-scale return to the office for knowledge workers. With no such surge in cases coming this year, it seems that offices were indeed more full with workers than they have been since early 2020.
Cubicles are largely empty in downtown San Francisco and Midtown Manhattan, but workers in America’s midsize and small cities are back to their commutes..
The office team in CBRE’s Cincinnati office has a new look.
With the retail sector facing challenges stemming from e-commerce — which is consequently helping fuel the white-hot industrial real estate market — struggling shopping centers and empty big boxes seem like obvious candidates for warehouse conversions.
The fortunes of Manhattan’s office market are coming down to old versus new.
Glassy skyscrapers that have popped up in recent years are luring companies seeking new space and preparing for the hybrid-work era, a sign of New York’s revival from the depths of the pandemic. Left behind are countless older buildings that haven’t been modernized in the past decade, presenting a costly problem for landlords.
The question for owners of those buildings is whether it’s worth pouring hundreds of millions of dollars into a full gut-renovation -- a gamble at a time when office use is down in general, available space is piling up at a record rate and high-profile companies such as Deutsche Bank AG and HSBC Holdings Plc are shrinking their global footprints.
The workplace has always been an essential part of any organization, but its validity has been put into question succeeding the COVID19-wake. In early stages of the pandemic, lock-downs expunged any and all in-house operations. What was a twenty year process in the evolution of the flexible workplace took to warp speed in the matter of a single quarter. Businesses scrambled to accommodate an online operational structure for their employees, while managing cut backs, and servicing existing debt.
Today, CBRE introduced Hana, which helps institutional property owners meet the growing appetite for flexible office space solutions, particularly among large corporate occupiers.
Hana, (pronounced “Hah-na”), will operate as a wholly-owned subsidiary of CBRE and, beginning in 2019, will be the third component of CBRE’s Real Estate Investments business – along with investment management (CBRE Global Investors) and development services (Trammell Crow Company).
Flexible office providers have been on a leasing tear this year. Last quarter, WeWork added 500K SF in Manhattan, surpassing JPMorgan Chase as the biggest private office tenant in the borough, while Spaces leased around 300K SF, taking several big blocks of space off the market, according to Savills Studley.
U.S. office market conditions continue to favor owners, as vacancy decreased by 10 basis points to 12.8% in Q3, the lowest level since 2007.
