Big Changes In The Commercial Real Estate Market

Last Updated:
April 2, 2023
Brian Wallace

Real estate, especially commercial real estate, has always been an attractive investment, but given the world’s financial state of affairs, there are large changes to be mindful of. The commercial real estate market is worth nearly $21 trillion, but the rise of remote work since COVID-19 is driving down office demand. Employees are spending over 30% less time in the office today than before the pandemic leading to 15% less office space demand per employee because of home offices. Office vacancies in San Francisco have more than doubled since before the pandemic with a 17.5% drop on office prices across the country, with an even larger drop still possible. 


But institutional investors know that while offices may be down, commercial real estate as a whole is still very strong. These challenges in the market ruffle feathers and create new buying opportunities as some get scared of the way the market changes. Luxury retail, such as Givenchy, Hermes, and Gucci have recently acquired new retail spaces in Manhattan. JLL Q3 industrial leasing activity in New York exceeded 1.1 million square feet and had a 2.3 million square foot year-to-date volume - more than 40% higher than all of 2021 combined. Colliers Manhattan leasing had volume grow by 26% to 9.23 million square feet, with a year-to-date leasing volume totaling nearly 25 million square feet.

Learn more about upcoming trends in the real estate market and a better way to sell your commercial and business real estate together here.

Orange County Commercial Real Estate

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