Office Market Update: Where Are We Now and Where Are We Going?
Originally published on October 11, 2024 by Ginger Meurer for NAIOP.
The supply imbalance in the office market has been stark the last few years, but panelists at NAIOP’s CRE.Converge conference this week identified bright spots and emphasized the possibilities for creative investors.
Rich Gottlieb, president and COO, Keystone Development & Investment, moderated the panel that featured John Weidner, AIA, NCARB, LEED AP, principal, Global Media Practice Area Leader, Gensler; Adam Showalter, managing director at Stream Realty Partners; and Connor Greissing, founder and managing principal, Brick Row.
Showalter said he hoped to “talk about some green shoots in office and not just a bunch of crabgrass.”
“There’s been a pretty big supply and demand imbalance over the last four years,” Showalter acknowledged, adding that this was exacerbated by the COVID-19 pandemic but has been on the rise for decades as developers took advantage of low interest rates and available land.
“It’s created a structural shift in which most owners of office markets across the country faced some really big challenges, and now it’s been felt by a lot of lenders,” he said.
Showalter said office is facing the same types of disruptions retail did.