New Office Product Continues To Outperform Even As Sector Shifts

When demand is negative, Class A office accounts for a lower proportion of net absorption.

By Lynn Pollack | October 05, 2021 at 07:11 AM

Despite a rise in hybrid work arrangements, the physical office is here to stay – and data captured over the course of the pandemic reveal that occupiers are choosing newer, better Class A product as they decide where to put down stakes.

“The physical office will continue to have some role to play in the future of work,” Cushman & Wakefield economist Rebecca Rockey says in a new report outlining the future of the sector across the country. “And although there are a myriad of occupiers with vastly different needs, we know that newer, better quality office product, which usually outperforms, did so to a greater degree during the pandemic. And that trend is expected to stick.”

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