P33 Chicago’s Post

Downtown markets were hit first, and the hardest, but the suburban markets aren’t immune. As leases expire, companies are taking the opportunity to evaluate and adjust their office footprints to the new norm (at least for the foreseeable future). While I think we will continue to see more people returning to the office, we are seeing that it won’t be a quick process.

Office space is still slumping, but it isn’t the same everywhere. There’s geographic variation in the office sector, with some Southern metros like Miami and Dallas showing resilience, while traditionally strong technology hubs such as San Francisco and Seattle are facing the brunt of the blow because of shifting work patterns. In fact, the sector faces another two years of capital value falls, according to a report from Capital Economics’ chief commercial real estate economist this summer. Read more here: bit.ly/3SRSw3g

At the end of 2019, Greater Boston's office market was booming, driven by the tech and biotech sectors with soaring demand and rents. Fast forward to 2024, and the landscape has drastically changed. Our new two-part blog series delves into these shifts, examining the impact of economic changes, evolving work patterns, and declining demand. Dive deeper into the evolution of Greater Boston's office market in our detailed blog. Stay tuned for Part 2, where we'll explore leasing activity, sublease availability, construction trends, and market outlook. #WRA #CRE #TenantRep

What's Happening in #StPete: Did you know - The Boyd Company recently named St. Petersburg, Florida one of the top U.S. cities for corporate office space in the "new normal" following the pandemic. The Boyd Co. provides independent location counsel to leading Fortune 500 and up-and-coming corporations worldwide. St. Pete was one of four Florida locations to make the list of 40 top suburban office markets for the current remote and hybrid working trends. Some factors that make the Sunshine City desirable are: ~ Florida's business climate ~ A movement to return-to-office in the financial services, life sciences, and tech industries, all of which are thriving in St. Pete ~ New office space coming online ~ Existing coworking space for companies looking to establish a footprint while searching for more space ~Low operating costs

At the very end of last year, Three Furies had to move offices. We hadn't planned to do so but the opening of a prison-style bootcamp on the floor below us forced us to pack our boxes. Logistics and opportunity dictated that the relocation happen in December. (Lesson 1: Motivational yelling is not motivating when it's not directed at you but you still hear all of it.) We realized we couldn't stay but after some due diligence, we knew we didn't want to leave the Lower East Side of Manhattan. We love the location, which is convenient for our team, and important since we are on a hybrid schedule. We appreciate all the restaurants and take-out options for lunch and after work socializing, plus the proximity to all of the conveniences (post office, bank) and small businesses (vegan grocery, printer,drug store, pet store) that make our lives easier on a day-to-day basis. (Lesson 2: Consider what *is* working when weighing how big of a change to make.) The good news is that by a stroke of luck, the same offices were available one floor up. Well, 2 of the 3 were. So we leaned into our austerity era, and gave up the couch and an extra desk to make it work, as Tim Gunn used to say. (Lesson 3: When the universe provides opportunity to continue business operations with minimal disruption and save $, do it.) After almost 10 years on the second floor, it's been fun to change up the routine a little. Our new floor is quieter and much brighter. (Lesson 4: Sometimes, a small change is just as impactful as a larger change. Note: It will take at least a week to push the right button on the elevator and stop going to the wrong floor.) We are attached to our co-working space, with our responsive community manager, an active social events calendar, some comfy lounges and a rooftop that we enjoy during the warmer months. (Lesson 5: Appreciate all the good stuff! Say hello to people in the Kitchen! Eat outside in the summer!) Overall, I'm thrilled to start a new year in our new offices with all the comforts of our familiar work community and beloved neighborhood. HNY, everybody!

This piece by The Wall Street Journal’s Carol Ryan is an interesting update on the state of office space in New York City and whether the outlook is brightening for owners of class A office real estate. There are so many benefits to bringing workers back to the office, including strengthening company cultures and collaboration, revitalizing city downtowns, increasing activity for small businesses such as restaurants and retail, and stabilizing the values of office buildings and property tax revenue for city services. Beyond communicating those economic benefits, we must also encourage workers to return to the office by providing high-quality office space and healthy surrounding communities that make them want to come back.

Despite challenges elsewhere, downtown Dallas remains vibrant as companies embrace growth and relocate to Uptown, showcasing the city's resilience and adaptability.   Partners' research, featuring insights from Steve Triolet, underscores this positive momentum amidst corporate America's hybrid work model transition. While challenges persist, such as a 26.5% office vacancy rate, ongoing office conversions and the region's rapid population growth offer promising avenues for revitalization. https://lnkd.in/geuJRZ5U

After a challenging period, we’re finally seeing the first sparks of a rebound in Boston's office market. Vacancy rates are starting to level off, and certain sectors, like life sciences, are thriving, offering hope for continued momentum. Compared to other cities, Boston's office visitation has rebounded more slowly. This slower recovery may be due to the city's strong cluster of tech companies, which have been slower to mandate a 4-5 day in-office workweek according to Declan Hood. Boston Globe Media: https://lnkd.in/eMV5wTTR #Boston #Office #AYOfficeBusynessIndex #AYdifference

Some much-needed optimism with a dose of reality. Despite the "trouble" commercial office is experiencing, office remains a vital tool and resource for most businesses. The sudden changes of the past few years simply expedited a transition to a more purpose driven environment with greater optionality. Consume office space, but consume it wisely. #tenantrep #cre #commercialrealestate #commercialoffice #capitalmarkets #futureofwork

𝐀𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: 𝐏𝐨𝐬𝐢𝐭𝐢𝐯𝐞 𝐒𝐢𝐠𝐧𝐬 𝐟𝐨𝐫 𝐃𝐨𝐰𝐧𝐭𝐨𝐰𝐧 𝐒𝐞𝐚𝐭𝐭𝐥𝐞! Despite the ongoing challenges in the office sector, downtown Seattle is showing promising signs of recovery. Over the past two months, there's been a significant increase in workers returning to the office, with weekday presence rising from 55% of pre-pandemic levels in May to 62% by July, according to the Downtown Seattle Association. 📈 This resurgence in office attendance could be a catalyst for broader economic activity, including increased demand for nearby housing options as more workers choose to live closer to where they work. 🏢 With city/county employee mandates requiring in-office work starting in November, and Amazon tightening its own in-office policies, we could see even more growth in downtown's vibrancy. While office space demand remains subdued, this uptick in worker presence is a step in the right direction. As downtown becomes more active, opportunities for residential development and investment may rise, paving the way for a stronger, more dynamic urban core. Read more about Seattle's resurgence in this insightful CoStar Group article: https://lnkd.in/geFhwRxY #seattleapartments #washingtonrealestate #pugetsoundrealestate #pnwrealestate #seattlerealestate #pugetsoundmultifamily #seattlemultifamily #pnwmultifamily