The office market is unlikely to return to pre-pandemic norms until 2024, but a record number of new business startups is expected to be a boon for the sector.
"With office space, the question is what will the hybrid work environment look like," Hessam Nadji, Marcus and Millichap president and CEO, told CNBC's Power Lunch this week. "Will there be less demand for office space per worker? We believe there will be and that will shrink demand—but at the same time when you have record number of new business startups and economic growth you'll see new demand."
How much new office demand these startups can generate remains unclear though. While some of those businesses will likely need commercial real estate, many will likely be one-person shops that will work out of homes or, perhaps, flexible office space.
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