In case you missed them, read my Part 1 and Part 2 posts.)
We know we have a significant surplus of legacy office space that is not the right fit for the reality that is 2023. So what do we do about it? My high-level thoughts are in the third and final post of my series.
First, much of the current and former office inventory in CRE hands is ready or nearly ready to change hands. Local governments can either help to ensure their sale to owners with a vision for transitioning them to more appropriate uses, or—if they are especially creative and nimble, and can get the right financing terms—acquire these themselves. And of course, some of these structures are vacant and in too rough a condition for rehab. It’s a longer and less certain path, but demolition and new construction are the only ways to get these sites back in use.
Second, let’s focus on what office needs remain and ensure they get fulfilled—and used. New office properties are still coming online, because there is still demand out there, even if it has recently diminished. One of the largest all-office projects announced in the US in the year before the pandemic, Adobe’s North Tower* in downtown San Jose, is virtually complete and will be occupied in early 2023.
How will they be adapted to our new reality? By focusing on the people, their users. Perhaps it sounds obvious, but we would have no organizations needing space without customers, and we would have no workplaces to outfit without employees.
So what does this person-centered future look like? Fewer assigned desks and more flexible workspaces, more semi-private and public outdoor spaces. I can say from experience it’s refreshing to bring your meetings outdoors when the weather allows, and even your heads-down work if there is wifi!
As I said, this is a very high-level overview. Interested in how this will really work in your city, on your block? Call me. ☎
*Note: I am not affiliated with Adobe or their North Tower project.
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