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Legacy offers a variety of commercial options, ranging from department stores and Fortune 100 franchises to local businesses and land development options. One of the fastest growing sectors in our portfolio is office space. While investments were risky during the pandemic, demand has increased since pre-pandemic levels and is a hot ticket in the CRE space. 

Since the pandemic sent many office employees home, real estate investments in this sector dwindled for a short period. However, those who held onto their office spaces are reaping the benefits now, as demand is increasing and the new office trends are owner-friendly in terms of low overhead and simple design. If you are looking into different sectors for your next commercial property acquisition, here are three reasons why the office space may be your best fit:

Owners are ready for the total return to the office.

Data from commercial real estate resource CommercialCafe suggests that interest in office space rentals has surpassed pre-pandemic levels, based on the frequency of online searches for “office spaces for rent” and similar search terms. In addition, based on another recent CommercialCafe survey, 43% of those searching online want a total return to the office (as opposed to hybrid options).

The demands for office space are changing. 

While business owners are ready for a total return to the office, many must conform to the new needs, desires, and layouts of today’s modern office. Many still want a flexible space that can provide hotdesks, coworking, and other hybrid work options in addition to employees working full-time in the office. Other changing trends include the increased demand for natural lighting, outdoor spaces, and smaller offices, as many companies are looking to downsize post-pandemic. 

This can be an excellent opportunity for developers and investors to provide a real estate offering that meets renters’ demands and edges out the competition with innovation. By designing your office space around these trends, you can add something new to the local market that will draw in ideal renters. 

Bare is better. 

For restaurant, manufacturing, medical, and other commercial buildings, you often need to tailor development to your tenants’ needs. However, office spaces are better when they are “bare bones,” or can be customized to meet a variety of industries. For example, the typical office space can host a small startup, a law office, a financial institute, or a municipal building. The flexibility that an office space can provide makes them ideal options for the agile investor.

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