Why Empty Offices Are the Biggest Real Estate Opportunity of the Decade

The story of America’s downtowns is no longer only about empty office towers and stubborn return-to-office rates. It is about portfolio mix. New analysis suggests that a rebalancing of how space is allocated for live, work, and play can unlock more than $120 billion in value across major U.S. markets. The prize is not only higher asset values on a per-square-foot basis, but also stronger local economies that benefit residents, employers, and city budgets alike.

That is the core argument of Reimagining Cities: Disrupting the Urban Doom Loop, a study by Cushman & Wakefield. The research identifies an “optimal portfolio” for walkable urban places, where the share of work uses sits closer to 42 percent rather than the 70 percent average common in Downtown districts today. In some cities, the skew is extreme. San Francisco’s downtown real estate base has been as high as 87 percent office. Others, like Miami, are closer to balance with a 44 percent office share. Credit to Cushman & Wakefield for translating a widespread hunch into a quantified target that stakeholders can plan against...

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RSK: It makes sense if you can repurpose those old empty office buildings into what is in demand, like living, hotels, entertainment etc., at a reasonable cost.