Trends Driving the Evolving Office Market — Commercial Real Estate Update
What trends are driving the office market evolution?
Talent, performance, and culture live at the crossroads of workplace strategy — and today, the dynamics of where and how work gets done is driving interesting change and opportunity across the office market.
Our team at CBIZ Gibraltar is always monitoring conditions and trends across commercial real estate. In this video, CBIZ Gibraltar Senior Vice President Noah Turner shares an update on the key factors in our evolving landscape.
The Continuation of Remote Work
Flexibility continues to be the key for businesses across all sectors, although more employees returned to their offices with more regularity in 2024.
The hybrid work model is here to stay, as most employees have settled into a 3- to 4- day in-person work routine — with Tuesday, Wednesday, and Thursday being the primary days employees are in the office — which is a general metric for most businesses, although there continues to be many companies bringing employees back more often. Flexibility will continue to be the driving force moving forward.
Environmental Business Practices
As sustainability becomes a top priority for many individuals, commercial real estate leaders can prioritize eco-friendly building practices, such as incorporating energy-efficient designs, renewable energy sources, and green building certifications that can enhance property values and attract environmentally conscious tenants. This will continue to be an important topic for discussion for both landlords and their tenants.
AI & Technology
There’s no doubt the integration of AI technology is critical to almost every business going forward. It is important for commercial real estate experts to leverage AI-driven analytics and operational practices to stay ahead of the market and deliver the most innovative solutions for their clients.
Landlord Viability & Capital
One of the more important challenges we have faced when evaluating new and existing projects is the financial viability of building owners and their lenders. Getting spaces built, having construction costs covered, and ensuring that landlords can maintain their properties has been a critical issue we are talking about every day. It is important for tenants to know their landlords have capital in the bank and cash on hand when needed. Oftentimes, it’s not about a tenant’s financial situation, but rather the individuals or institutional owners the own commercial buildings. This will continue to be a critical issue going forward.
Watch here for an update on the driving forces in commercial real estate with CBIZ Gibraltar’s Noah Turner.
At CBIZ Gibraltar, we are constantly developing innovative and strategic ways to better our results for our clients. With the ever-changing market around us, tenants need a proactive approach to negotiating, evaluating, and managing their real estate needs so they can put their focus on their business goals and objectives.
2025 will be a milestone year for office space users. Whether your real estate plans are immediate or far-off, we would like to get to know you and your office space needs.