Office real estate trends

When the coronavirus (COVID-19) pandemic struck, few could predict the major impact it would have on the office real estate sector. Working from home started as a temporary measure to tackle the spread of the virus but has since evolved into various degrees of flexible working arrangements, including working from the office, from home, or a third location. Other factors that impacted the sector were the growing economic uncertainty following the pandemic and the increasing push toward sustainability and higher-quality space. Since the onset of the pandemic, demand for offices has been lower, leading to a rise in vacancies and slower rental growth. Once the most popular commercial real estate asset class among investors, the office sector has suffered a decrease in investment volumes and investor sentiment.