Colorado-Real-Estate-Journal_319905

INSIDE R arely in the history of the workplace has the pace of change moved as quickly as what we have witnessed over the past two years. This year offered some insights into what physical office use may look like moving forward, but we are still far from knowing what the “new normal” will entail. Here is a look into office occupancy trends from this year and what we anticipate might shape 2023. Physical office occupancy in 2022 A full-year review of physical office occupancy across the Colo- rado Front Range reveals some sur- prises. Overall, physical office occupancy was rel- atively unchanged from the begin- ning of the year through November, except in down- town Denver and Colorado Springs, which saw a small but steady rise. On the other hand, suburban physical office occupancy actually declined over the course of the year, though they were gener- ally the first to experience tenants’ return in 2020 and 2021. It’s possible that in 2022 some of those employ- ees opted to visit their downtown offices instead, or are simply going into the office less, falling in line with the office attendance patterns of their downtown counterparts. Office use in all submarkets tends to be concentrated on Tuesdays, Wednesdays and Thursdays. We are also seeing some correlation between the size of the company and physical office occupancy, with companies with 20 or fewer employees seeing much higher occupancy than companies with 100 or more employees. Trends that will shape office occupancy in 2023 Building owners are recognizing the role they play in incentivizing workers to return to the office and are making strategic investments in their properties to help tenants in Managers and owners will immediately see the benefits of their sustainability programs. ESG in due diligence Compliance and sustainability will improve return on investment and net operating income. Sustainability solutions PAGES 18-21 Preparing your building to meet demands, expectations of a carbon-free future. Energize Denver Please see Office Occupancy, Page 16 January 2023 PAGES 23-27 PAGE 4 Judy Duran Managing director of property management, CBRE The evolution of office occupancy in Colorado Owners are enhancing amenity spaces like this one at 1900 16th St.