In recent years, the nature of the office space has dramatically matured. One good example is the co-working model. WeWork is the best example of that trend, with many similar companies further feeding into that change in demand. More and more companies, large and small, opt for curated, open floor plan office space with very flexible leases, as well as community facilities and group events. Co-working demonstrates how office space demand is changing, and our team of global experts continuously responds to those changing needs.

The booming tech sector has been one of the biggest drivers for new office space in recent years. Whether it is in London, Barcelona, Hong Kong or multiple North American cities, the emergence of start-ups and related firms have boosted the uptake of office space. According to some estimates, the tech sector has been responsible for nearly a quarter of all new major office leasing deals in the last two years.

But it is not merely the tech sector that is boosting office demand and thus pulling in more fresh capital into the office segment. Investors increasingly take a long-term view and analyse, more than ever, the shifting patterns among prospective tenants and their workers. Forward-thinking investors and their development partners seek to include facilities and functionality that correspond with tomorrow’s employees. Good examples are bike storage, common areas, roof terraces, a bar, mixed-use space and gyms.

This changing demand is reflected in lease agreements, as tenancy deals become shorter and more flexible, serving an increasingly critical and demanding tenancy base. Even traditional offices respond to those changes, and ROD Offices works with investors to get the balance between landlord’s interests and tenant flexibility right, as it allows for the penetration of evolving labour forces and the provision of workplace amenities for employees that would otherwise be locked in long-term lease agreements.

Rod Offices has noticed that many investors are increasingly prioritizing their investments in new and evolving office properties, such as co-working, primarily in order to diversify their real estate portfolios. Our experts have observed a clear move away from the traditional office models. As some more traditional investment communities find this change a challenge, our office specialists would be delighted to assist and guide you in this process.

Our office team works to detect challenges and seeks to create synergies across regions, sectors and customer base, both in the company’s home market as well as internationally. As companies increasingly outsource their activities, more businesses than ever operate a large, global office portfolio, with lease needs and requirements spread out over multiple markets. These days, modern workforces know no borders.

In addition to the expanding options in the office property sector, office properties are increasingly being transformed by technology and shifting tenant preferences. Our team understands that like no other. ROD Office team anticipates and leads when it comes to smart buildings, co-working spaces, and office opportunities.

Government regulation, particularly policies aimed at the environment, have started to affect the office sector. Sustainability plays a vital part in the construction and development of new workers’ buildings. At the same time, regulators and other public bodies are closely securitizing new properties, setting out strict criteria with regards to the environment, energy use, clean air, waste disposal and health & safety.

When it comes to an appealing office proposition, location is key. Traditionally, the best offices could be found in central business districts in larger cities but improved transport facilities and infrastructure upgrades have changed this perception. These days investors are increasingly looking at suburban markets, where costs per square ft or meter are lower. Access to public transit, parking facilities, and green spaces have become more instrumental in determining the value of an office asset. Particularly in an economy at full employment, location preferences of employees play increasingly a vital role and are therefore regarded more and more as a key factor for investors.

Since the office space is one of the most broadly diversified investment ecosystems within commercial real estate, with our team representing dozens of investors, developers and other committed players, our team would be thrilled to tell you more about their past investment strategies and client proposals.