More than half of executives polled in a recent Ernst & Young survey say they plan to invest in commercial real estate despite the current economic environment, while two-thirds say they are either leasing or plan to lease suburban office space.
Just 33% of US C-suite business leaders surveyed by EY say they will downsize their CRE investment, while 58% say they will invest in commercial real estate, which could include enhancing or expanding the real estate footprint.
"The economic downturn will force leaders to make important decisions regarding their real estate portfolios — from investments, to space optimization, to workforce models," says Mark Grinis, EY Americas Real Estate, Hospitality & Construction Leader. "Employers are beginning to understand that they need to earn the commute time of their employees, and many are investing in the 'office of the future' to achieve this."
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