Who Said Office Space was Obsolete?
As the office sector continues to evolve and adapt to a post-pandemic business landscape, one pathway that promises resiliency is the inclusion of office spaces into mixed-use developments. While the 2010s brought an upsurge of live-work-play mixed-use developments, the arrival of COVID-19 raised fears that the trend would fall flat as workers stayed home and foot traffic nearly evaporated.
However, with companies now increasingly adopting hybrid work models, office spaces in mixed-use projects can afford the advantage of in-place amenities like shopping and dining, which can help commercial tenants entice workers back to the office. For owners and developers, a mixed-use model can offer more long-term resiliency through diversified space usage across a variety of asset types.
- U.S office listing rates averaged $37.37 per square foot in April
- The national vacancy rate slid to 15.7%, returning to January figures
- Office sales volume reached $26.7 billion, with the national average sale price at $277
- The office construction pipeline totaled 148.2 million square feet nationwide