1、NationalInvestmentForecast2024OFFICEOffice properties continue to face a particularly complex operating climate,with a unique blend of cross currents and headwinds impacting the sector.The operational challenges have been further complicated by generally negative media coverage and a broad-based exp

2、ectation that the need for office space is declining and will never recover to prior demand levels.While it is true that the adoption of remote and hybrid work models has shifted how many companies utilize office space,including shrinking their footprints,investors need to be wary of broad-based gen

3、eralizations.Some office property segments continue to see sturdy demand.In many cases,secondary and tertiary markets have held out better than gateway cities;meanwhile,suburban areas,newer office buildings,and smaller properties have generally outperformed older,urban office towers.The office prope

4、rty subsegments that are standing out favorably against the broader trend are often overlooked amid the negative press cycle and offer investors unique opportunities in the current climate.However,the best-performing office properties in the best market areas still face substantial financing hurdles

5、.Even investors with strong banking relationships continue to face challenges acquiring debt capital on well-performing office properties.The complex and divergent performance landscape,together with steep borrowing costs and lender hesitancy,has severely hamstrung the office investment landscape;ye

6、t,with this circumspection comes opportunity.The reduced competition for assets opens the field to smaller investors,including prospective owner-users seeking to acquire the space they occupy.Historically high barrier to entry markets may have become more accessible,and ultimately,some space may nee