Obsolescence Equals Opportunity_final (002)

In an increasingly bifurcated office market, analysis must extend past simply an evaluation of the Class A+, premier segment. Office demand is slowing, lease expirations are mounting, all as tenant preferences are shifting. The confluence of these dynamics places commodity and Class B and C product at an increasing risk of obsolescence and underperformance. The office sector faces a challenge in defining, funding and delivering the right strategies for the portfolio of assets that are increasingly unwanted and facing mounting vacancy. This paper took the first step in identifying and understanding the risk the sector faces, while also highlighting strategies that have succeeded in aligning properties with modern-era tenant demand. The spectrum of opportunities spans across the budget spectrum, but all can help to preserve income and maximize asset value. Cushman & Wakefield has formed a global, multi disciplinary team to respond to the office sector’s need for reimagination, repositioning and repurposing. Just as the retail sector has faced critical junctures of necessary adaptation and evolution, the office sector now faces a similar chapter. This chapter of necessary evolution and adaptation will fall on the shoulders of the entire ecosystem—whether that be through public private partnerships at the government level or throughout the spectrum of ownership and investment community. Proactively addressing the need for transformation throughout the bulk of the commodity Class A, Class B and C segment will help to position the sector for long-term viability. Conclusion

The Next Evolution of Office and How Repositioning and Repurposing Will Shape the Future | 43