Adapting to the Declining Office Market: Strategies for Brokers

The office sector is facing a period of transformation. With remote and hybrid work reshaping demand, many traditional office spaces are struggling with rising vacancies and falling valuations. For commercial real estate brokers, this shift presents both challenges and opportunities. Adapting to these market changes requires strategic thinking, creative deal-making, and leveraging technology to identify and capitalize on emerging trends.

Understanding the Market Shift

The declining demand for traditional office space is driven by several key factors:

• Hybrid Work Models: Many companies are downsizing their office footprints as employees split time between home and the workplace.
• Increased Sublease Space: A growing number of businesses are offering excess office space for sublease, intensifying competition.
• Shifts in Tenant Preferences: Tenants now prioritize flexibility, amenities, and sustainability over large, long-term leases.

Brokers who recognize these trends and adjust their strategies accordingly can stay ahead of the curve.

Strategies for Brokers in a Changing Office Landscape

To stay ahead, brokers must embrace flexibility, leverage data, and explore new asset classes. While the office market faces challenges, there are still opportunities to drive value for clients and reposition office spaces effectively. Below are key strategies to navigate the evolving landscape.

1. Reposition Office Listings for New Uses

With traditional office demand on the decline, brokers should explore alternative uses for underperforming properties. Some office spaces are being repositioned for:

• Mixed-use developments incorporating retail, residential, and hospitality.
• Medical or life sciences facilities, which often require office-like spaces but have unique leasing needs.
• Co-working or flexible office space, catering to businesses seeking shorter-term leases and adaptable layouts.

Encouraging property owners to invest in renovations that support these transitions can improve marketability.

2. Focus on High-Demand Office Segments

Not all office space is struggling. Certain segments are thriving, including:

• Class A properties in prime locations with top-tier amenities.
• Suburban office parks, which appeal to companies seeking lower costs and shorter commutes for employees.
• Sustainable buildings, as tenants increasingly seek energy-efficient and ESG-compliant spaces.

Brokers should identify these high-performing niches and tailor their outreach accordingly.

3. Leverage Data and Technology for Smarter Leasing

Data-driven insights are essential for navigating a shifting market. Platforms such as RealNex  provide brokers with powerful analytics tools, helping them:

• Identify emerging tenant preferences and trends.
• Assess market comparables to price properties competitively.
• Streamline marketing efforts with targeted outreach campaigns.

By using technology to refine their leasing strategies, brokers can improve deal velocity even in a slow market.

4. Strengthen Relationships with Tenants and Investors

In uncertain times, strong relationships can make all the difference. Brokers should proactively engage with both tenants and investors to:

• Identify companies seeking flexible lease options.
• Help landlords understand tenant needs and adjust lease terms accordingly.
• Advise investors on repositioning office assets to align with evolving market conditions.

Consistent communication and tailored solutions will help brokers build trust and maintain business momentum.

5. Emphasize Creative Deal Structuring

With fewer traditional leases being signed, brokers must get creative with deal structures. Consider:

• Shorter lease terms to accommodate tenant uncertainty.
• Revenue-sharing or performance-based leases, where rental rates adjust based on business success.
• Tenant improvement allowances that help attract high-quality tenants.

Structuring flexible deals can make office spaces more attractive in today’s environment.

Navigating the Future of Office Real Estate

While the office market is evolving, brokers who adapt can still thrive. By repositioning properties, focusing on in-demand office segments, leveraging technology, strengthening relationships, and structuring flexible deals, brokers can turn market challenges into opportunities.

RealNex is a CRM tool that can be used by commercial real estate professionals to work more efficiently and improve their productivity. At RealNex, we offer an incredibly powerful, yet amazingly simple, end-to-end solution. To learn more about RealNex and NavigatorPRO, and to see samples of the products that we offer, visit our website. When you are ready to experience the RealNex difference for yourself, schedule a demo or contact us today — we’d love to talk with you!