Neither rents nor cap rates have fallen by much for office buildings in major gateway markets.
While the timeline for a post-pandemic recovery in the office sector remains unclear, many companies do plan to fully return to the office. However, many tenants also plan to redesign their office spaces, either downsizing or enlarging them to fit their future needs.
Some firms are expected to increase the amount of office space they hold post-pandemic, according to Nancy Muscatello, managing consultant at data firm CoStar Advisory Services, who adds that the biggest disruption in space utilization will likely occur in crowded urban gateway markets, where the most office space will be needed per capita. Counterbalancing this trend, these markets are also the most likely to see the greatest rates of remote working in the future due to congestion and a higher share of well-educated workers, who have more bargaining power with employers about work flexibility, Muscatello notes.
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ORLANDO, Fla., Feb. 5, 2021 /PRNewswire/ Homebuilding experienced a surprise year of growth in 2020 despite the pandemic, but new home construction this year will be constrained by supply side factors like higher lumber costs, a shortage of lots and regulatory issues, according to Dr. Robert Dietz, chief economist and senior vice president for economics and policy for the National Association of Home Builders (NAHB). Dietz was one of several real estate economic experts who spoke to 424 Realtors® and attendees during Florida Realtors® virtual 2021 Florida Real Estate Trends summit on Feb. 4.
He said, We expect the COVID-19 crisis to continue through February 2021, with a 50% vaccination rate by the end of April and a 75% rate by the end of October – we anticipate accelerating economic growth later in 2021. The new-home construction industry will grow in 2021, but at a lower rate, especially as interest rates will trend higher with
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ORLANDO, Fla., Jan. 26, 2021 /PRNewswire/ Real estate drives Florida s economy, and figuring out what lies ahead in 2021 is key for policymakers, residents and Realtors, especially with a continuing global pandemic. This year s Florida Realtors® 2021 Florida Real Estate Trends virtual summit also features a panel discussion on how residential and commercial real estate intersect, along with trends in development and new home-construction.
Florida Realtors Chief Economist Dr. Brad O Connor and Dr. Robert Dietz, chief economist and senior vice president for economics and housing policy for the National Association of Home Builders (NAHB), will share their insights at the 2021 Florida Real Estate Trends on Feb. 4. The Zoom webinar begins at 9 a.m. and ends at 11 a.m.
Private equity funds have been among the most active buyers in recent months.
Concerns about downsizing and uncertainty around when many tenants might return to the office definitely impacted office sales investment volumes in the first half of 2020. But the winds may be changing, as the downward spiral on office sales started showing signs of reversal in the third quarter, the most recent period for which final data is available.
That quarter saw a portfolio deal by the Blackstone Group, which agreed to acquire a 49 percent stake in Hudson Pacific Properties’ studio and office portfolio in Los Angeles, including five office buildings with almost 1 million sq. ft. of space. The second largest office portfolio deal in the third quarter was made by Alexandria Real Estate Equities and involved the acquisition of five assets in the Raleigh-Durham Research Triangle for $581 million. According to Nancy Muscatello, managing consultant at CoStar Advisory Services, there were 10 oth