The entire concept of a real estate cycle might be obsolete, along with most of the office buildings in Manhattan. We know one thing for sure in commercial real estate: Nothing is going back to the way it was.
Take the shift to open-office plans, which have been touted by designers as the wave of the future. It has led to a disturbing trend for office owners: Employment is booming in major cities like New York, but the offices employers are occupying are not growing apace.
“For pretty much all of recorded history, office employment and occupied space have tracked together, and this cycle, they have decoupled,” Hodges Ward Elliott Managing Director Will Silverman said at Bisnow’s New York City State of the Market last week.