By Cameron Woodford, Commercial Properties Inc.
Office property fundamentals have steadily improved during the economic recovery. However, the office market will face some very unique challenges in the coming decade as workforce demographics affect corporate real estate decisions. Each office subtype, even in the same geographic market will face unique challenges. The differences are, perhaps, most easily summed up in comparing downtown and suburban markets. Absorption rates of Portland’s downtown office space continue to outpace those of suburban office. Landlords should take note, as this does not appear to be a short term trend, but reflective of the shift in workforce demographics as one generation steps into retirement and another takes their place.