FTI Experts’ Hub: The Ins and Outs of the Bifurcated Office Market

Office is on a slow recovery path, and it is said that 2024 will be a transitional phase that will ultimately bring the sector closer to a post-pandemic norm. CommercialEdge’s latest office report shows that the national office vacancy rate continued to climb in 2023, with Class B and C properties particularly struggling. Meanwhile, highly amenitized quality space in good locations is still in high demand.

Several structural trends are bifurcating the market, so we asked industry veteran Glenn Brill, who serves as managing director with FTI Consulting, to share his views in the first episode this year of our quarterly podcast series, FTI Experts’ Hub. In his conversation with Commercial Property Executive Senior Editor Laura Calugar, Brill discusses trends he sees in the market and how they might evolve.

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READ ALSO: What’s Ahead for the Office Sector in 2023

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Here’s what you’ll hear about:

• The growing divide between prime office and the rest (0:47)
• The flight-to-quality trend (4:06)
• How much will outdated office space weigh on the market? (6:27)
• Proptech’s role in reshaping real estate and bringing back to life obsolete properties (7:20)
• Is a full return to the office possible down the road? (10:51)
• The impact of remote work on the office market (12:41)
• What type of companies are using offices today (15:13)
• Smaller occupiers and coworking (16:46)
• Large occupiers/corporations and coworking (18:24)
• What do occupiers want in terms of leases? (20:16)
• Company relocations (22:05)
• Who will be the winners and losers in the medium- to long-term? (24:01)

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