Vast Majority Of Corporate CRE Pros Predict At Least 20% Office Demand Drop

Bisnow Dec. 16, 2022

“Hybrid work plans are starting to become set in stone across more of corporate America, and as more companies finalize their policies, how much office space they are going to cut from their footprints is becoming clearer. More than 71% of corporate real estate professionals say they expect hybrid work to result in space demand reductions of at least 20%, according to a survey from Colliers and CoreNet Global. Almost 19% expect that demand to shrink by 40% or more, while just 7% believe that the move to hybrid work will either not impact office demand or lead to a need for more space.”  When I speak with office landlord brokers many of them are much more optimistic  about the future return to the office, believing there will be more mandates that force workers back into the office. I disagree with them. Also long-term if we build fewer new office properties over time obsolete buildings will be torn down and rebuilt as housing or other more viable uses.  What do you think?