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Office real estate splits into winners and laggards across markets

ConnectCRE notes that despite widespread concerns about empty buildings and declining valuations, some office properties are achieving record rents and investors see opportunities in specific markets and capital structures.

Reported · Written up by our desk · Industry

ConnectCRE says the office real estate story cannot be reduced to a single, uniform market outcome five years after the pandemic shifted where and how people work.

The outlet points to an analysis from Meketa arguing that office performance is uneven: some properties are hitting record rents while others remain under pressure, and certain urban cores have rebounded as other areas try to redefine demand.

Meketa said the sector’s challenges started before 2020, citing trends such as the rise of coworking, changing workplace preferences, and competition from newer, less capital intensive real estate types.

ConnectCRE also highlights Meketa’s view that investors should not treat office as one asset or one sector, because outcomes vary by local economic conditions, demographics, and workplace expectations, creating a more complex landscape where some buildings may need repositioning or repurposing.

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