The Office market is considered as one of the most stable real estate assets and it is liked by the institutional investors, owing to its adaptability, long lease period and having stable tenants. Therefore, it is valued at the lowest capitalization rate compared to the other real estate classes.
Since last one-decade technological innovations is changing real estate needs for office space. The outbreak of COVID-19 has accelerated the change in the work style. Remote working is now adopted worldwide and most of the people are happy with the result of it. Remote working is possible only due to the available advanced technologies.
Tenant’s need (demand) and characteristics of office supply are also changing constantly. Tenant’s are expecting workplace to be more flexible and dynamic. Type of office supply is changing on account of densification, intensification, and reuse of old spaces.
Traditional property owners have started responding to changing tenants needs by launching Co-Working space, providing more social space and other initiatives.
Technology is changing the way office space is used. The business of an office provider is shifting from business-to-business (B2B) to business-to-consumer (B2C), delivering experiences and meeting to the individual end user requirements.