The Office Market Will Continue a Slow Recovery in 2022

Slow and steady is the best way to describe the office recovery. The path out of the dislocation caused by the pandemic began last year as companies returned to the office and began to make long-term workplace plans. In 2022, the office sector will perform much like it did last year, marked by a paced recovery.

“We anticipate that 2022 will look similar to last year, with the office sector moving continuously on a slow, steady recovery trajectory amidst many companies still navigating how they will utilize office going forward – and making strategic moves to ensure they are prepared,” Rob Solomon, chief development and legal officer at BLT Enterprises, tells GlobeSt.com.

The pandemic is, of course, the biggest risk to a complete office recovery. The omicron variant served to delay a widespread return to the office, and future variants could do the same. However, Solomon believes any delay is temporary. “While the highly contagious new variant might cause brief pause for some, we are confident the next several months will see an increase in the use of physical office space on a regular basis, as more firms are solidifying what their office policies will be and potential changes needed to support these,” he says.

Solomon is also encouraged by major office transactions, like Google’s recent acquisition of a New York office building for $2.1 billion, which shows strong appetite for high-quality office space in dense urban markets. “High-profile movements demonstrate continuing faith in the critical role of workplaces in the future, and we expect more transactions like these will occur in 2022 as businesses and investors think long term,” explains Solomon.

While Solomon is confident in a widespread return to the workplace, he does note several changes to enhance safety and confidence in the office. “Recognizing that the pandemic would have a lasting impact on how businesses approach employee health and wellness, one of our first courses of action was to begin implementing COVID-conscious amenities at our projects, including efficient air filtering, touchless doors and dispensers, natural light, open space, and well-appointed outdoor areas when applicable,” he says. “We are finding that these features have positioned the assets as highly competitive.”