Will emptied offices in major metros devalue retail space?
Last week, New York City released a report saying that the value of its forest of office towers had fallen by 25% in the past year. Cushman & Wakefield estimated that major metro office vacancy rate nationwide increased by 16% during the pandemic. Can we expect, then, a similar decrease in the value of retail property in center city districts?
Not necessarily, according to Kenton McKeehan, senior managing director and head of retail for Hines, which owns $144 billion of real estate assets across all sectors in 25 countries. He says that office locations that will retain low vacancy rates are the ones that offer workers the best and widest range of amenities such as restaurants, nail salons, gyms, and stores.