Advertisement
Back To Daily Digest
The Challenges Facing The Office Sector
Tags: BUSINESS

The Challenges Facing The Office Sector

As the U.S. slowly begins to reopen, companies are navigating the best way to bring employees back into the office. However, leaders will need to recognize that the world’s largest remote working experiment has left many employees desiring this arrangement in the long-term.

At the same time, the office sector is facing its own issues with low occupancy and increased sublease space. So how do businesses satisfy the needs of workers?

The misconception that remote working leads to lower productivity was diminished over the past year, and employers are expected to pivot away from collaborative, open plans in favor of design that abides by health and safety protocols.

The Latest News
Delivered To Your Inbox

Still, according to Catherine Liu, an associate manager at research firm Trepp, “the long-term nature of office leases allowed borrowers to maintain debt service obligations even though physical occupancy dropped off significantly during the height of the pandemic.”

Liu added that the occupancy rates between March 2020 and April 2021 had been declining across the top 25 metropolitan markets with the largest commercial mortgage-backed securities (CMBS) exposure.

“While the larger space inventory and the potential for lower demand due to hybrid work models will suppress re-absorption and keep a lid on asset values in the near term, concerns about the ‘death of the office’ or ‘death of gateway cities’ have largely been overblown,” said Liu.

ABOUT Aayat Ali
Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

Latest on Daily Digest

Amazon Corporate Employees Will Return To The Office
Amazon Corporate Employees Will Return To The Office

Kentucky Hotel Operator To Open New Coworking Space
Kentucky Hotel Operator To Open New Coworking Space

The Challenges Facing The Office Sector
The Challenges Facing The Office Sector

The Coworking Space Market Forecast
The Coworking Space Market Forecast

Facebook Expands Remote Work Policy
Facebook Expands Remote Work Policy

Spaces Opens First Estonia Location
Spaces Opens First Estonia Location

Common Acquires Bay Area Coliving Firm’s Portfolio
Common Acquires Bay Area Coliving Firm’s Portfolio

Ad
Advertisement

FOLLOW US

  • Facebook
  • Twitter
  • LinkedIn
  • instagram
  • pinterest
Ad
Advertisement
Advertisement
Advertisement
Advertisement