redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2

Flexible Office Space & Asset Valuation in 2020: Regaining Traction Amid Distraction

February 28, 2020

Part of CBRE's Agile Real Estate Knowledge Hub

Recent sales data suggests that office buildings with less than 30% of their total square footage occupied by flexible space providers sustain little to no loss in value. Of the $5 billion worth of 2019 office sales, 71% had a capitalization rate that was either 50 basis points above or below a baseline peer set (Figure 1). Micro-market real estate fundamentals appear to be the most important consideration for investors, regardless of the presence of flexible office space.

Figure 1: Cap Rate Spread vs. % of Flexible Office in Building

Flex Office Valuation-Figure 1-3

Source: CBRE Research, Real Capital Analytics, Q1 2020.


For More Information, Please Contact

Richard Barkham, Ph.D.
Global Chief Economist, Head of Global Research & Head of Americas Research
+1 617 912 5215
Spencer Levy Headshot
Spencer Levy
Global Chief Client Officer and Senior Economic Advisor
+1 617 912 5236
Julie Whelan
Julie Whelan
Global Head of Occupier Thought Leadership
+1 617 912 5229
Travis Deese, Senior Research Analyst
Travis Deese
Associate Director, Occupier Research
+1 404 441 4239
Christopher Ludeman
Global President, Capital Markets
Capital Markets
Brian Stoffers
Global President, Debt & Structured Finance
Capital Markets
Whitley Collins
Whitley Collins
Global President, Advisory & Transaction Services | Occupier
+1 310 363 4842
+1 213 220 9102