Commercial Office Space Is Making a Comeback, How Owners Can Protect Their Property

Demand for office space is on the rise, possibly indicating that the bottom of the commercial office space market has passed, and a rebound is underway, Property Casualty 360 recently reported. Data from real estate tech platform VTS shows that demand for new commercial office space started rising in late 2022 and recently hit its 12th consecutive month of year-over-year growth. At the end of the second quarter, office space demand was up 17% from the previous year and 34% from December of 2022.

The trend has occurred alongside a decline in work-from-home rates. Overall, it appears the “market has reset, and the worst is officially behind us,” the CEO of VTS said in a press release.

“It makes total sense to me why commercial office space is growing again,” said Mandi Bitterlin, Senior Underwriter, Commercial Insurance, Burns & Wilcox, Kansas City, Kansas. “During COVID, a lot of individuals had to work remotely. Now, I think many companies have seen a major need to build their culture back. We want and need to be back in an office space for the culture-building aspect.”

Even businesses that allow hybrid work schedules may still require space to gather their entire teams as needed, Bitterlin added. As more companies return to or expand their office space, they should consider the risk of potential losses and review their Commercial Property Insurance to ensure they are adequately protected.

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