Demand from big tech companies revives the US office market

 Rising demand for technology giants such as Inc., Facebook Inc., and Google in New York has given property owners and real estate agents hope that the office market will be hit hard by the Covid-19. Will return to the original state.


Demand from big tech companies revives the US office market

These tech giants are now looking for offices in one of the largest financial states in the United States, which gives the office market high hopes for recovery. This is according to the release of CNA on February 27, 2021.

But working from home and leaving people in expensive coastal areas will likely have an impact on the demand for office space.

At the same time, office building prices in US cities remained stagnant or slightly higher during the epidemic. But rental rates and the number of buildings sold have declined, the data showed.

Joe Gorin, Barings Real Estate Manager in the United States, said the epidemic left a big question stuck in the office space.

He said, " I know that you will use the hotel or at home instead of the office during the epidemic. " Why do workers use office buildings? "There will be some repercussions because we will have to adopt a new way of using your office "

Gorin said companies need to make offices more attractive, but buildings that do not provide a good working environment will be affected by demand.

He continued, " If you create the right thing for the office building, it will increase the value of buildings "

Demand from big tech companies revives the US office market

Data shows that prices for Class A office buildings are falling and may fall further if demand declines continue.

Rental activity increased after the New Year but remained below the Covid-19 crisis.

Sam Isaacson, president of Walker & Dunlop Investment Partners in Denver, Colorado, says the office sector is the hardest to evaluate because leases generally have long-term contracts.

He said, "At the same time, cash flows must be matched up real estate (office), but when it does not happen that's when we'll see an affected ".

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