MODESTO, Calif., Aug. 25, 2020 /PRNewswire/ -- Work is different during the pandemic for millions of people — and it may very well stay that way for months to come. Commercial real estate firm Graceada Partners just released a comprehensive report on the future of office space for the coming years. The report indicates there is a steady exodus from large cities to less populated ones, particularly noting Chicago, New York City, and San Francisco. Ultimately, Graceada Partners unveils five predictions for the future of office work:
- The rise of secondary markets
- Prioritizing hybrid office models and employee health
- WeWork to witness a resurgence
- The growth of small businesses
- The rise of microbusinesses
"The commercial real estate industry has witnessed many changes during the pandemic," said Ryan Swehla, one of the two co-founders of Graceada. "We see big changes ahead for office spaceand we're very interested in how people will continue to collaborate and what the future of that space will look like."
With vast amounts of employees still working from home, secondary cities--such as Sacramento, Nashville, and Salt Lake City--will witness continued population growth, a trend that already began before the pandemic. Meanwhile, employers will continue to weigh the pros and cons of their office spaces — they'll be far more intentional, potentially downsizing or moving to a newer, more open space or embracing more flexible models.
"While this might be a bolder prediction, but I think the WeWork model will have a resurgence," noted Joe Muratore, the other co-founder of Graceada. "I think they've hit rock bottom and will be able to actually find their niche in the marketplace because of the pandemic. We discuss that further in our forecast."
The report also states that with downtown real estate being "undervalued" by previous standards, smaller businesses will invest in these locations to move up the corporate food chain. This will trigger a type of "trickle up" effect, where microbusinesses will find more opportunities and mobility as smaller businesses gain their own traction.
To view the full report, visit GraceadaPartners.com/The-Future-of-Work.
About Graceada Partners
With a half billion in assets under management, Graceada Partners invests in value-added real estate by repairing, rebranding, and leasing-up space. They are the market leader specializing in commercial real estate investment in California's fastest growing region, the 7.4 million population Central Valley. Born in 2008 during the heart of the Great Recession, the firm is seasoned experts in times of economic uncertainty.
Graceada's "secret weapon" is the partnership between the firm's principals, a partnership built on 35 years of friendship and mutual respect. This allows them to challenge each other and create an environment that fosters competitiveness and innovation while limiting confirmation bias in investment and market analysis.
The firm is currently raising and investing Graceada Partners Fund II with a minimum return target of 15% IRR. Graceada Partners' historical equity multiple is 2.05.
Learn more at GraceadaPartners.com.
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SOURCE Graceada Partners