Disruptive Trends Reshaping Office Dynamics

“The office sector and commercial real estate, in general, are not immune to the effects of globalization and technological innovation,” says Rose.

TORONTO—Office fundamentals across 64 major markets in the Americas and Europe remain solid, with nearly two-thirds of the metro areas seeing year over year vacancy declines, according to Avison Young’s midyear report on the sector. However, these markets are also feeling the effects of disruptive trends.

“The office sector and commercial real estate, in general, are not immune to the effects of globalization and technological innovation,” says Mark E. Rose, chair and CEO of Avison Young. “The world is transitioning into a more distributed, automated and digital economy, which impacts how occupiers conduct business and think about their workplaces, and this transition may have profound implications on the role and intrinsic value of property. In turn, owners and developers are finding ways to adapt and provide flexible work environments that meet these changing requirements.”