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news, and trends from the Coldwell Banker Commercial brand.
Medical office space remains a strong asset class for a variety of reasons, including consistent demand, evolving technology, longer lease terms, and strong fundamentals.
More than 10,000 residential units were created nationwide through conversions last year, and tens of thousands more are expected to come online in the coming years, according to Yardi Matrix.
Given the rapid increase in office vacancies and the continued popularity of remote or hybrid work models, post-pandemic, commercial real estate investors are now turning their attention to coworking spaces as the demand for them rises. Coworking and shared spaces have become crucial for various professional groups, including early-stage small businesses, freelancers, and college students. The appeal of coworking is expanding, from entrepreneurs managing solo operations to large corporations investing in shared workspaces, and even college students are emerging as new users in coworking spaces near their campuses.
The Real Estate Round Table recently released its 2023 Q1 Sentiment Survey, a comprehensive measure of industry experts’ confidence and expectations regarding the commercial real estate environment. As we’ve observed throughout the first quarter of 2023, the real estate market has been uncertain and incredibly volatile due to the historic increases in short-term interest rates and soaring inflation.
Although opportunities to acquire distressed CRE have been few and far between thus far, conditions may lead to a significant uptick in the sale of troubled office assets in the coming years. It’s long due, as industry observers have been anticipating a wave of distressed office listings since the pandemic’s onset first unsettled the office market.
As we discussed in part 1 of our Adaptive Reuse Deep Dive, this trend is understandably becoming more and more desirable for cities and developers alike. In part 2, we are outlining the appeal of adaptive reuse for developers, the environmental and economic benefits and the way it better serves the community compared to new construction and gentrification.
Adaptive reuse in commercial real estate refers to the process of redeveloping a building or property type into a new property, typically to meet higher demand in that sector. Adaptive reuse apartments have recently become a popular subject of discussion, as US office sales continue to sink. Over the past few decades, vacant offices buildings have been redeveloped into residential buildings, offering for-sale condominiums or rental apartments.
If you have read any article on the #office sector for 2023, you know that the future remains uncertain nearly three years after the pandemic disrupted the industry. According to the latest CommercialEdge office report, 2023 will bring further uncertainty to the office sector as we enter the post-pandemic phase. Although some companies are becoming more aggressive about returning employees to the office, others have fully embraced hybrid and remote work practices.
Previous segments of this blog series touched on the disconnect between workers and employers, the shifting priorities and values of the general workforce and the role management and leadership plays in DEI initiatives. In this final installment, we dive into what it will take for savvy companies to position themselves for success.
The following is a thought leadership post from Dan Spiegel, SVP & Managing Director — Coldwell Banker Commercial