June 24, 2025 | BOMA International, Ella Krygiel
A recent report by CBRE found that demolitions and conversions of U.S. office buildings are outpacing new office deliveries, helping to reduce record-high availability and support the market’s recovery. Since the pandemic, conversion and demolition activity has accelerated, with the U.S. office conversion pipeline now totaling 81 million square feet of planned and active projects. Both CBRE and Colliers’ research highlight Manhattan as a standout market, having returned to pre-pandemic levels of leasing and net absorption. Manhattan and Austin are also leading in new office construction. More broadly, Colliers reports leasing growth across several markets, though warns that economic uncertainty—such as tariffs—could stall momentum. As the office market continues to evolve, two commercial real estate experts, Dave Greaney, Founder and CEO of Synergy and John Stephens, Senior Director in CBRE’s Americas Consulting practice share their insights on the trends and signals city leaders should watch to navigate the uneven recovery. Read on for their perspectives.
How are offices adapting to a hybrid work world?
“Hybrid work fundamentally reshaped both how office space and the workplace as a whole is used and how value concentrates in urban centers,” Greaney says. “We’re seeing a move from static, desk-centric layouts to more dynamic, hospitality-driven environments that support team collaboration, culture-building and flexibility.” A recent Sodexo blog post expands on these hospitality-inspired services, noting that technology can enhance the office experience through roles like a guest experience manager—someone who greets employees by name, assists with office needs and ensures team members feel supported throughout the day.
In addition to these futuristic workplace features, Stephens notes that urban business districts are evolving into more mixed-use, less office-dominant environments. He explains: “In these areas, office buildings will remain essential components and drive the lion’s share of economic activity in many instances, but they will be supported by a more diverse set of buildings, attractions and venues.” Greaney agrees, envisioning central business districts as mixed-use destinations where work, living and leisure converge. “The future of the workplace isn’t binary (remote or in-person); it’s intentionality-driven,” he says. “The traditional 9-to-5 commute model is giving way to more fluid patterns of occupancy, which influences everything from transit infrastructure to different retail uses and hours.”
What opportunities or challenges do you see in adapting existing office buildings for new uses?
“The key opportunity in adapting existing office buildings is to reimagine assets in ways that respond to current social and economic demands,” says Greaney. He points to the potential in converting well-located but underutilized buildings into residential units, life sciences facilities, educational spaces or flexible work environments. A Forbes article echoes this, noting that repurposing distressed real estate can support economic revitalization, boost property values, promote sustainability and encourage creative space use. Stephens adds that leasing activity increasingly favors buildings that elevate the workplace experience through thoughtful amenities and design. While older buildings may be at a disadvantage, he believes repositioning plans should begin now to showcase their potential to future tenants.
Still, challenges remain. CIX Capital highlights slow growth in office-using jobs, high vacancy rates in less desirable properties, and a glut of sublease space. Greaney adds that zoning delays, costly retrofits and structural limitations often hinder adaptive reuse. Yet he remains optimistic: “Cities and developers who can work together to streamline conversion pathways will be better positioned to address urban housing shortages and inject new life into business districts.” He cites Boston, MA as a promising example, where efforts to simplify downtown development are helping shift public processes toward more community-focused, outcome-driven projects. Boston will also host the BOMA International Annual Conference – click here to learn more and register.
What trends or signals are you watching most closely as the office market continues to shift?
When brainstorming strategies for navigating the uneven office recovery, Stephens encourages city leaders to consider a broad range of indicators, including:
- Tax roll trends, both negative (appeals, valuation drops) and positive (premium asset gains).
- Performance disparities, where top-tier buildings may offset weaker ones.
- Exposure across property classes and vacancy levels to assess risk and opportunity.
- Housing-to-office space ratios as a long-term planning metric.
- Transit ridership, foot traffic and weekend activity as signs of recovery and vibrancy.
- Special events and popups as indicators of successful placemaking and engagement.
In addition, Greaney highlights several key trends he’s closely monitoring as the office market continues to evolve. These include the ongoing flight to quality, which is accelerating the divergence in asset performance, along with other important indicators:
- Tenant behavior analytics and understanding occupancy patterns by day and function is helping landlords tailor amenities and leases.
- Policy shifts around zoning and tax incentives that could unlock adaptive reuse at scale.
- The evolving capital markets environment.
- AI and automation both in building operations and as a force changing tenant industries.
“Ultimately, we’re in a transition period,” Greaney says. “The workplace and office as an asset class is being redefined, and those who stay adaptive, data-informed, and community-oriented will lead to the next phase of urban transformation.”
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