“There exists a tangible panic around the office real estate market […] Startling headlines, visible vacancies, and diminished revenue; the passing days sound like warning bells to investors and landlords alike.”
In an article for the New York Real Estate Journal, I shared my thoughts on counter forces in the industry that make the question of a market recovery much more complicated than fear-inducing headlines may suggest. I review a recent study published by UBS Group, and focus mainly on the following:
- The matter of space and the reversal of the densification trend
- The variation in return rates per industry
- Complications specific to the co-working sector
To conclude, I acknowledge the likelihood that offices will be forever changed by COVID-19. Nonetheless, we are far, far away from the end of office real estate.
To read more, you can find the article here.