Commercial real estate investors are keen to bring the major office market back to normal in the near future, but most haven’t bet on it yet.
Nearly three-quarters of real estate experts believe office leasing rates in major cities will return to pre-pandemic levels within the next four years, according to a new study by law firm Morrison & Foerster. April and May United States.
However, when asked which markets are currently best suited for commercial real estate acquisition, 47% of respondents ranked the primary market as one of the top choices, followed by the suburbs of the primary market. 46% and the secondary market were 37%.
Twenty-one percent of respondents predicted that office leasing rates in major cities would never return to pre-pandemic levels. Taken together, this result shows that investors may be finding value in new markets after the pandemic.
The office market has been hit hard by remote work, and this trend has caused some employees to suffer. Go away As more companies buy from cities or secondary homes embrace A hybrid working model, even when the vaccine is growing. Respondents to the survey disagreed on whether migration from urban areas represents a temporary change. 59 believe so, but 30% show it is a permanent trend.
Still, as office workers gradually return to their desks, some companies are instructing 100% of their employees to return immediately. next month — The idea of working from home has evolved.
