Office Markets

“Flight to quality” describes the trend where tenants, rather than seeking bargain space, strategically migrate from Class B and C offices to best-in-class, amenity-rich buildings even if that means leasing less space overall or paying a premium. This bifurcated market is defined by robust demand at the top end (newer, well-located, feature-rich properties) and persistent vacancy or rent concessions in the lower quality segment.

Key features tenants now expect in top office assets:

• Prime locations near transit, retail, and lifestyle amenities.
• Health and wellness features, such as superior air quality, outdoor spaces, advanced ventilation, and touchless technology.
• Comprehensive amenity packages including onsite fitness, conferencing, concierge, food options, and curated hospitality experiences.
• Sustainability and ESG: LEED certification, net-zero operations, and visible green credentials are increasingly “must-haves.”
• Flexible layouts and lease terms that can accommodate hybrid work and evolving needs.
• Cutting-edge technology to support hybrid collaboration and seamless building management.

Buildings embodying these qualities such as North Hills Innovation District in Raleigh or newly repositioned trophy assets in Charlotte have been securing longer, higher-value leases, while outdated spaces face ongoing absorption challenges.

Related Trends Include:

• Phase 1 Environmental Site Assessment
• Property Condition Assessment
• Commercial Due Diligence
• Corporate Risk Management
• Environmental Compliance