Future Of Office Space (North America)

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Executive Summary

Economic uncertainty, new ways of working, low occupancy rates and tenant expectations have dramatically changed the North American market for office space. The office market is being shaped by corporate demand for high-quality spaces, efforts to improve portfolio resiliency, a focus on sustainability and an emphasis on enhancing the workplace experience. Offices must now incentivize workers to come in, promote sustainability, enhance productivity in hybrid environments and support various types of working. Real estate stakeholders must prioritize the digital and physical transformation of offices to meet employee expectations, financial goals and net zero targets. This report analyses the market, customer and technological trends impacting the four categories of offices in 2024, and proposes what the future of offices in North America will look like across these four categories. Office software and service providers should leverage this report to understand the changing priorities of real estate stakeholders and the technological developments impacting the office market to better prepare for the future.

Table of contents

Summary for decision-makers
Offices 101: Introduction to the asset class and the trends impacting it up to 2024

The four core categories of office space and the varying dynamics within each segment
Offices have gradually evolved in response to new priorities and ways of working
Drivers of change shaping the future of office space
Four megatrends in 2024 shaping the offices of the future
Real estate stakeholders seek to address office space surpluses, fragmented office technology stacks and talent shortages
Workplaces are undergoing massive changes driven by employee expectations and experiences
Innovative technologies on the horizon for offices
Economic contractions and existing building stock constrain the future of offices
The offices of the future across the office space segments
Firms will continue to leverage headquarters to attract best-in-class talent
Flagship headquarters will continue to be smart buildings that adapt based on occupant needs and surrounding environments
Future Class A offices are set to redefine tenant-landlord dynamics with innovative leases and enhanced amenities
Co-working spaces and Class B-C offices face the most uncertainty

Table of figures

Figure 1. Segmentation of office spaces into four categories
Figure 2. The evolution of how and where people work
Figure 3. Megatrends driving the future of offices
Figure 4. Implementation of energy and decarbonization projects in North America
Figure 5. List of technology solutions and systems found in buildings
Figure 6. Expected use of service providers over the next three years
Figure 7. Future of offices hypotheses

About the authors

Joy Trinquet

Senior Analyst
Joy is a Senior Analyst in the Verdantix Smart Buildings practice. Her current research agenda focuses on integrated workplace management systems/connected portfolio intelligence platforms (IWMS/CPIP), building systems integrators, and space and workplace management solutions. Joy joined Verdantix in 2019, having previously worked at BNP Paribas Asset Management as a business development intern. She earned a BA degree in Economics with a concentration on policy, as well as dual minors in computer science and business studies, from New York University.

Claire Stephens

Research Director, Smart Buildings
Claire Stephens is Research Director of the Smart Buildings team. With 18 years of experience in the sector, Claire is recognized as an expert in industries that make up the built environment, in particular, corporate and commercial real estate, and workplace and sustainability technologies. At Verdantix, Claire will be digging into building technology for building owners, occupiers and investors, focusing on how to support them in reaching their ESG objectives. Prior to her arrival at Verdantix, Claire launched Asia’s first corporate real estate, green building and building technology publications. She has also delivered full lifecycle real estate consultancy services covering a broad range of asset types in industries including financial services, oil and gas, pharmaceuticals, technology, consumer goods, media, retail and hospitality.

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