Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
According to Yardi Matrix, more than 10,000 residential units were created nationwide through conversions last year. While adaptive reuse looks like the perfect solution for removing obsolete and empty office space, many factors can prevent a building from being a good candidate.
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.
Although experts acknowledge the lack of clarity on pricing and the uncertainty about current market conditions due to inflation, rising interest rates, and supply chain disruptions, there is an overall optimism that this recession will not last long and that inflation is at its peak in most markets.
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.
Several downtown areas like Chicago, Cleveland, and Philadelphia have excess office space and insufficient housing to meet growing residential demand. Thus, developers have a solid opportunity to give new life and purpose to an old building with nearby restaurants, retail, and strong employment.
Adaptive reuse apartments have recently become a popular subject of discussion as US office sales continue to sink. Over the past few decades, vacant office buildings have been redeveloped into residential buildings.
2023 post-pandemic office sector trends explored by Coldwell Banker Commercial.
CBC outlines strategies for success amid shifting workforce dynamics in commercial real estate.
CBC reports that office design transformations due to the pandemic result in more adaptive workspaces.
As 2022 ends, investors show a marked shift to bearish sentiments on the CRE market's future.