Global Office Asset Trends: A Look At 2023 And Beyond

Post-pandemic, with some level of remote work here to stay, the global real estate industry is tracking an unprecedented reassessment of the office asset class. To paraphrase Mark Twain, have the rumors of the "death of the office" been greatly exaggerated? Or are office assets hanging on, with a new focus lead by a "flight to quality" by end users? A rising rate environment makes navigating this new "normal" even more challenging. What trends are being seen in the global marketplace for office assets in response to these conditions for 2023 and beyond?

Globally there is a slow road to recovery in the office market lead by shifting needs from end users, with owners, investors, and lenders reevaluating strategies taking into account interest rate and valuation concerns. European city centers are holding valuations and rents, US and Australian markets are seeing a flight to quality and a glut of B- and C-quality office assets, which may be ripe for better uses.