A "deep divide" in the office market will continue to deepen this year as tenants continue to flock to high-quality, amenity-rich assets at the expense of lower-quality buildings in less desirable locations.

"The best buildings are seeing strong demand," says CBRE's head of office research Jessica Morin. "By the best buildings, we're talking about buildings that have amenities that drive employee wellness and health and the types of buildings where there's walkable retail and amenities.  And we're going to continue to see technological advancements being used in the office that really help provide this seamless experience between people working in the office and meeting with clients that are in other locations."

Location-wise, Sun Belt markets will continue to curry favor, as well as life sciences hubs like Boston, Denver and Salt Lake City. Top-tier properties in otherwise hard-hit gateway cities like Manhattan and Los Angeles will also garner more interest, according to CBRE researchers.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.