Shorenstein CEO Brandon Shorenstein and CBRE’s Patrick Gildea discuss why the office market is poised for a comeback. Hear what they have to say about risk-adjusted returns, property conversions, the importance of workplace amenities and more.
Key takeaways on office investing:
Office market is recovering: Investment activity in the office sector is rebounding with more bidders and increased debt availability.
Investment strategies have shifted: Investors are focused on cash flow and downside protection, with cash-on-cash yields reaching 8%–15%.
Micro-market dynamics are key amid a flight to quality: Prime assets in live-work-play submarkets are outperforming, while obsolete buildings face demolition or conversion, reducing overall supply.
Conversions are limited: Selective repositioning is critical, as only a small percentage of office buildings are structurally viable for residential or hotel conversions.
Occupier priorities have changed: Tenants now prioritize wellness, sustainability and experiential amenities, driving demand for high-quality spaces.
