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2024 Could Mark a Turning Point for Office Sector
The drumbeat of bad news from the office sector has been so pervasive over the past years that it has almost become a fact of life. But a new report from JLL suggests that 2024 could mark a turning point — with the possibility in a few years that demand for office space will exceed supply.
Several factors underlie this optimistic view. A growing number of companies have imposed return to office mandates, as have several government agencies. As this happens, there will be fewer opportunities for companies to downsize. At the same time, a number of office buildings are being converted to residential or other uses. And new office construction has fallen sharply as a result of poor investor confidence and high financing costs.
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