682: BiggerNews November: Was The “Office Apocalypse” All Hype? w/Kevin Fagan

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 1 November 2022

⏱️ 67 minutes

🔗️ Recording | iTunes | RSS

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Summary

Office investments were supposed to be dead by now. 2020 was supposedly the great exodus, where on-site workers were freed of their commutes, small talk, and trips to the water cooler. We were sold a future where remote work was the only option, where everyone had an at-home standing desk, and nobody needed to wear pants. But, this didn't last long, as companies slowly started taking steps to get workers back into the office, making owners of the offices wealthy once again. But, with so many companies trying flexible schedules, prioritizing work from home, and renewing their video conferencing subscriptions, will office space still be the same as it was just a few years ago? On this month’s BiggerNews, we brought on Kevin Fagan, Senior Director and Head of CRE Economic Analysis at Moody’s Analytics, to give us the scoop on office investing and commercial real estate in 2022. Kevin’s team works diligently going through the data behind office investments, highlighting whether or not leases are renewed, how rents are being affected, and if office buildings are truly being abandoned. He brings some good news not only for office space investors, but for real estate investors as a whole, showing that this niche won’t be going away anytime soon. With coworking and residential conversions on the rise, office building investments could be a far smarter move than most investors would assume. In This Episode We Cover: How office space investing fared through the pandemic and how far occupancy rates fell Comparing today’s office investing environment to 2008’s and the stark differences between the two Office occupancy forecasting and when the data predicts a full recovery How unemployment rates will affect office investors and whether or not employers will force workers back into the office The best real estate markets to invest in office space and which big metros to definitely avoid The benefits of office investing compared to residential real estate and why this low-turnover niche is worth it And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram Dave’s BiggerPockets Profile Dave’s Instagram Investing in Office Buildings—A Beginner’s Guide The Coming Collapse of Downtown Office Real Estate Connect with Kevin: Kevin's LinkedIn Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-682 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pockets Podcast Show 682.
0:04.0	So there's this co-work, and on the world, more calls it Flex Office.
0:08.0	And I think that's more the appropriate term because when you hear co-working, you think
0:12.0	more of like the hot desk version of WeWork.
0:16.0	But Flex Office is actually a subtype of office that's tracked as a subtype of office in places like the UK.
0:25.0	For a long time, and for the last 20 years now, actually, since it's fired in 2003, I think,
0:30.0	Kushman and Wakefield started tracking Flex Office as a property type.
0:35.0	What's going on, everyone? This is David Green, your host of the Bigger Pockets Real Estate Podcast.
0:39.0	Here's today with one of my favorite co-hosts, the amazing Data Deli Dave Meyer with another Bigger news episode, Dave Hower, you today.
0:48.0	I'm alright, man. I was actually kind of sick, but I was so excited to have this conversation that I rallied to talk about this very important topic
0:56.0	and get a chance to hang out with everyone here.
0:59.0	It's one of the things I love about you is I too have been rallying after BP kind of been pretty sick, but this show must go on.
1:05.0	And BP, we've been talking about there's like a BP flu going around.
1:09.0	Like every day, there's just a hangover for sure. It hit me very hard.
1:13.0	It was a lot. It's intense and it was super fun, but like it is that, you know, it's like a pole forward on all of your energy.
1:21.0	And like I was just feeling drained for a few days after.
1:24.0	And I don't sleep well like if I'm out of town, so I was getting maybe three, four hours of sleep at night.
1:29.0	And then you combine that with the traveling in the airports, all the hands you're shaking, all the hugs and the pictures you're taking.
1:34.0	Like it was a recipe for getting sick, but still if I had to go back, I would do it again.
1:38.0	I'd do it again next week.
1:40.0	Well, you're an amp. You know how to partner. It's not going to scare you.
1:44.0	All right. And a quick word from today's show sponsors.
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