The buzz is that the office sector will experience a slowdown this year due in part to a labor shortage and an abundance of new supply being delivered that will drive up vacancy rates and slow rent growth. Other contributors include less space required per employee due to the open-plan office space trend and a shift from downtown office demand to suburban markets. Despite these setbacks, the office investment environment, particularly within the West Coast and Florida regions, is cautiously optimistic due to the business-friendly policies being signaled by the new administration.

Sources:

BISNOW, Have Office Markets Plateaued? All Signs Point to Yes.

BISNOW, Office Investment Outlook Remains Strong, Despite a Few Headwinds

BISNOW, The Top 10 Buy, Sell Office Markets for Investors to Note