BOMA 2017 Keynote: National Office Vacancy Is Up, But No Reason For Alarm

BOMA President and Chief Operating Officer Henry Chamberlain delivered his annual State of the Industry address on the future of the commercial real estate industry Monday morning at the 2017 BOMA International Conference & Expo.

“We’re at full employment, so how do we attract talent,” he asked attendees.

Chamberlain echoed the sentiment of other industry leaders questioning how much longer is left in this extended period of economic recovery — is a crash looming or does the cycle still have a few years left? While he pointed to the average office vacancy rates ticking up nationwide, he said it was a sign of shifting market dynamics as opposed to a sign of distress.

Densification has led to companies needing less space than before. Mobile technology and a push for efficiency have reduced the office footprint. It is projected a business will only need 151 SF/worker by the end of the year from 225 SF just a few years ago, Chamberlain said. 

“If you look at Nashville, though, they are building offices here, which is interesting,” he said of the BOMA 2017 host city. 

Chamberlain capped his address by divulging the top items office tenants look for in their spaces. Creative offices reflecting the mission or brand as well as plug-and-play design (seamless connectivity) were top of the wish list. Fitness facilities, workspaces encouraging better productivity, outdoor spaces, modern finishes and optionality also were highlighted. 

He said the most unique addition to the list of what office tenants want was access to food trucks.

“Years ago, we felt they were competing with the restaurants in the building, but now they are viewed as a desirable amenity,” he said.