SVN® International Corp. presents the 2024 State of the Market Report, giving insight into the office sector.
The pandemic has fundamentally altered the commercial real estate sector, with the office segment bearing the brunt of its impact. Remote work, now a permanent fixture for many, has stabilized around 28% of workdays spent at home, prompting firms to reassess their office space requirements. Despite these challenges, there’s a growing recognition within the industry of the need for innovative strategies to adapt to the evolving office landscape.
Transaction volumes and property values in the office sector have experienced significant declines in recent years. Average cap rates have risen sharply, indicating heightened risk perceptions among investors. Consequently, property valuations have decreased, with prices per square foot declining consecutively over the past two years. Amidst these shifts, there’s an opportunity for forward-thinking stakeholders to embrace creativity and flexibility in navigating the changing dynamics of the office market.
Learn more about recent changes in the office sector by clicking on the full report below!
