The typical current analysis of office space revolves around average occupancy rates driven by work-from-home. A more accurate analysis, a report from Savills earlier this year, is about oversupply.
Not construction booms, which they say are the historical sources of oversupply. Nor even "vast development of new buildings, and not enough occupier demand to fill such space." Instead, Savills points to obsolete buildings with chronically high availability combined with the post-pandemic "new normal" hybrid workplace business model.
One could quibble about oversupply versus obsolescence. The latter is ultimately the result of the former aggregated over time without attention to keeping existing buildings as up-to-date as possible. The results are the same — too many buildings with too much space that too few companies want.
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
Already have an account? Sign In Now
*May exclude premium content© 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.
