Shake It Off: Office investing is coming back

Shorenstein CEO Brandon Shorenstein and CBRE’s Patrick Gildea discuss why the office market is poised for a comeback. Hear what they have to say about risk-adjusted returns, property conversions, the importance of workplace amenities and more.Key takeaways on office investing: Office market is recovering: Investment activity in the office sector is rebounding with more bidders and increased debt availability. Investment strategies have shifted: Investors are focused on cash flow and downside protection, with cash-on-cash yields reaching 8%–15%. Micro-market dynamics are key amid a flight to quality: Prime assets in live-work-play submarkets are outperforming, while obsolete buildings face demolition or conversion, reducing overall supply. Conversions are limited: Selective repositioning is critical, as only a small percentage of office buildings are structurally viable for residential or hotel conversions. Occupier priorities have changed: Tenants now prioritize wellness, sustainability and experiential amenities, driving demand for high-quality spaces.