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The polarisation of the office market

Understanding the motivations of occupiers and the type of space they need is going to be critical for investors in offices over the next decade. In an environment where businesses are competing fiercely over attracting and retaining top talent, especially among the younger generations, the quality of the office and workplace has become a significant consideration.

For investors, there will be some excellent opportunities in office over the next phase of the real estate investment cycle and into the future. The incoming ESG regulations, combined with a broader social acknowledgement that the future office must be sustainable, will only accentuate demand for compliant and desirable office space in a market where this type of space is in scarce supply.

In the latest edition of IPE’s Real Assets, Tom Duncan, Stephen Cahoon, and Florian Hoyndorf shared their views on the short and long term changes expected in occupier demand for office space as ESG compliant and sufficiently specified for hybrid working are becoming key requirements. They also discuss how this, together with a change in the interest rate regime and risk return profile, influences the market dynamic and opportunities for investors.

The full article can be found by clicking here.

 

  •   12 January 2023
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