Two CRE Asset Classes Leading the Way

Steve Quick

WASHINGTON—The real estate market continues to remain favorable for commercial real estate services. Though economic growth has decelerated in 2019, there is still a continued momentum, especially in two particular asset classes, according to Cushman & Wakefield.

Office and Coworking

“Our office clients are pursuing location and workplace strategies to attract top talent. Many of our clients are looking for highly amenitized space in mixed-use neighborhoods,” says Steve Quick, Chief Executive of Global Occupier Services at Cushman & Wakefield. “Companies are often looking for ways to cut costs, and since real estate is usually the second biggest expense, it makes sense to evaluate real estate costs. Many employers are analyzing their square feet per employee ratios and ways to reduce that, and one way to do that is to embrace an open office concept.”

While coworking or open offices were initially praised for encouraging employees to interact or have face-to-face conversations, new research, according to Cushman and Wakefield, finds that open offices often times discourages communication. Employees instead email more to ensure privacy plus avoid distracting colleagues and eavesdroppers.