06/22/2023 | Press release | Distributed by Public on 06/22/2023 06:33
The future of the office is here. The U.S. Chamber of Commerce Future of the Office survey has found that the new office will be more flexible, open, and health-conscious than the old. As many look to repurpose existing commercial spaces, the professionals surveyed said government red tape is a key barrier to office space conversion. The survey also found that some commercial real estate professionals think offices will be converted to other commercial uses-but few anticipate they will be transformed into residential properties.
The commercial real estate professionals surveyed say that government regulation is a primary barrier to office space conversion, but that existing office footprints and environmental rules are also contributing challenges. Almost half (46%) of commercial real estate professionals indicate zoning/ permitting is impacting their ability to convert current office space into other types of real estate with nearly one in four (23%) saying it is the most important factor. In addition, 47% of those surveyed indicate building layouts are impacting their ability to convert office space into other types of real estate, while more than two in five profesionals (44%) indicate environmental regulations.
Architects (54%) are more likely than builders (35%) or owner/managers (24%) to say that converting office spaces into other commercial uses will be a trend in the coming year. However, real estate professionals are more skeptical that conversion from commercial to residential space will be a big trend this year. Among the different specialties, builders are more likely to believe converting office space into housing will be a big trend. One in five builders (20%) believe converting office spaces into residential housing units will be the most influential trend in office design in the next year. This is compared to just 6% of both property owners/managers and architects saying so.
The findings from the survey show that a majority of commercial real estate professionals believe that improving office air quality (58%), spaces that accommodate social distancing (52%), and spaces which allow for co-working (52%) will be influential trends in office design over the next year.
Most of the professionals surveyed foresee a significant change in long-term trends. A majority of those surveyed say flexible workspaces (65%), improved ventilation (63%), and work-from-home/hybrid spaces (61%) will be hot trends in office space design over the next five years.
The purpose of this study-which was conducted in late 2022-was to identify trends in office space conversion, design, and usage among commercial real estate professionals (architects, builders, and owners/managers).
The specific research objectives of this study are to:
The Chamber plans to conduct future, similar surveys to document evolving trends in the commercial real estate market and office environment.