Market Size of Global Office Space Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 10.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Office Space Market Analysis
The global office space market is expected to record a CAGR of 12% during the forecast period. Leasing momentum is back as most offices are safely implementing return-to-work. Inquiries have picked up around city centers, and so has the leasing activity. In the office space market, net absorption turned positive for the first time since the onset of the pandemic. The IT and ITeS sectors are among the prime drivers of overall leasing activity in the top cities, and bulk-hiring by these firms will influence demand for large quality office spaces.
COVID-19 is expected to influence the medium-term real estate strategy of several global office space occupiers. Renewed COVID restrictions stemming from the spread of the Delta variant impeded the recovery in some parts of the world during the third quarter, but in most countries, the economy continued to rebound. Uncertainty remains an ongoing theme; however, office spaces are now seeing signs of a demand recovery.
While leasing has declined from April 2020, some interesting trends have emerged in the office space. Occupiers, for instance, have been increasingly renewing their office spaces since April 2020, when the pandemic started. Occupiers are looking to be in new-generation offices with modern amenities with a focus on health and wellness. There will be more emphasis on flexibility, with occupiers keen to explore co-working spaces for a decentralized workforce.
Occupiers are using the current favorable market dynamics to negotiate renewals. They are looking at more flexibility in leases too. Occupiers' decisions are quicker than last year, with a focus on new-generation offices. Re-entry of employees has started in various countries, with many companies planning to get back more employees from January 2022. This will prompt occupiers to make leasing decisions quicker. Corporates will face a challenge to design and modify existing office spaces to support a company's established culture while following the new health protocols and yet promoting social interaction and collaboration.
