Cushman & Wakefield CEO Predicts Near-Term Office Vacancy Pain To Be Offset By Job Gains

Negotiating the return to work is a multifaceted challenge that will likely depress demand, but one leading commercial real estate figure said he thinks that economic growth will eventually render the issue moot.

Though near-term office demand will shrink by 10% to 15%, the addition of new jobs will make up the difference in two to three years, Cushman & Wakefield CEO Brett White predicted in an interview with CNBC.

“Right now we’ve got the lessening of space because of Covid and a different style of working ... but then also, we also have this economy now absolutely roaring back and creating new jobs,” White told CNBC. “So, yeah, you’ll see buildings that have more vacant space this year and probably next year than they’ve had in a long time. But in the midterm, two to three years, that space should be taken up again.”

As over half of adults in the U.S. have received at least their first dose of a coronavirus vaccine, questions about long-term plans for office usage and remote work have become more immediate. Major employers have come out with varied plans, from Google and Goldman Sachs emphasizing their commitment to in-person work to Microsoft and Spotify planning for potentially permanent remote work for employees who want it.

As younger workers have made clear in surveys that they see in-person work as a crucial element of mentorship and network-building, some tech startups are betting that having a full office schedule could help them poach talent from other companies focusing on hybrid working, The Wall Street Journal reports. Other employees are likely to go the other direction and find new jobs rather than comply with orders to resume in-person work.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Cushman & Wakefield, NYC Added To Suit Alleging $250K Agency Lease Shakedown

'Office Is Back' As Corporate Relocations Continue To Fuel Demand In Collin County

Hudson Pacific's Historic San Francisco Conversion Project Gets Approval

FIRST DRAFT LIVE: Why Sun Belt Multifamily Giant Cortland Is Moving Its Money North

Data Centers Fuel Busiest Industrial Market Since 2022

Treasury Introduces Rule Blocking Big Investors From Bulk-Buying Homes

KDC Pursues $3.5B In Financing For AT&T's Huge HQ Campus In Plano

Bouwinvest, Tishman Speyer Launch U.S. Office Venture With Chrysler Building As Debut Deal

FoxRock Buys Quincy Office At 78% Discount After Luring Tenant Away

'Illegitimate' Or 'Leveling The Playing Field'?: Why Habitability Cases Are Surging In Eviction Court

Walker & Dunlop Execs On Dealmaking Volatility, Data Center Risks, Housing

SL Green's $2.5B Sell-Off Hits Interest Rate Snag