Market Size of Global Office Space Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 10.00 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Office Space Market Analysis
The global office space market is expected to record a CAGR of 12% during the forecast period. Leasing momentum is back as most offices are safely implementing return-to-work. Inquiries have picked up around city centers, and so has the leasing activity. In the office space market, net absorption turned positive for the first time since the onset of the pandemic. The IT and ITeS sectors are among the prime drivers of overall leasing activity in the top cities, and bulk-hiring by these firms will influence demand for large quality office spaces.
COVID-19 is expected to influence the medium-term real estate strategy of several global office space occupiers. Renewed COVID restrictions stemming from the spread of the Delta variant impeded the recovery in some parts of the world during the third quarter, but in most countries, the economy continued to rebound. Uncertainty remains an ongoing theme; however, office spaces are now seeing signs of a demand recovery.
While leasing has declined from April 2020, some interesting trends have emerged in the office space. Occupiers, for instance, have been increasingly renewing their office spaces since April 2020, when the pandemic started. Occupiers are looking to be in new-generation offices with modern amenities with a focus on health and wellness. There will be more emphasis on flexibility, with occupiers keen to explore co-working spaces for a decentralized workforce.
Occupiers are using the current favorable market dynamics to negotiate renewals. They are looking at more flexibility in leases too. Occupiers' decisions are quicker than last year, with a focus on new-generation offices. Re-entry of employees has started in various countries, with many companies planning to get back more employees from January 2022. This will prompt occupiers to make leasing decisions quicker. Corporates will face a challenge to design and modify existing office spaces to support a company's established culture while following the new health protocols and yet promoting social interaction and collaboration.
Office Space Industry Segmentation
The office space market refers to any administrative or clerical office space maintained as a business and any office established by a public service over which this title has jurisdiction. This report offers a complete analysis of the global office space market, including the market overview, market size estimation for key segments, emerging trends by segments, and market dynamics. The report also offers the impact of COVID-19 on the market.
The Global Office Space Market is Segmented by Building Type (Retrofits, New Buildings), End User (IT and Telecommunications, Media and Entertainment, Retail and Consumer Goods), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).
| By Building Type | |
| Retrofits | |
| New Buildings |
| By End User | |
| IT and Telecommunications | |
| Media and Entertainment | |
| Retail and Consumer Goods |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Global Office Space Market Size Summary
The global office space market is experiencing a resurgence, with leasing activity picking up as companies implement return-to-work strategies. The IT and ITeS sectors are driving demand for large, quality office spaces in major cities, influenced by bulk hiring. Despite the challenges posed by COVID-19, including renewed restrictions from the Delta variant, the market is showing signs of recovery, with net absorption turning positive for the first time since the pandemic began. Occupiers are increasingly renewing leases and seeking modern offices with a focus on health, wellness, and flexibility, including co-working spaces for decentralized workforces. The market dynamics are favorable for negotiations, with quicker decision-making and a focus on new-generation offices as companies plan to bring more employees back to the office.
The office space market is characterized by improving sentiment and activity, though recovery varies by region. While global leasing volumes have increased compared to the previous year, they remain below pre-pandemic levels. Vacancy rates continue to rise, but at a slower pace, with development cycles peaking in 2022. Tenant-friendly conditions persist, with landlords eager to attract tenants, although rents for premium buildings have increased in some markets. The banking and financial services sector remains a dominant occupier of premium office space. International businesses are revitalizing their workplaces to enhance corporate branding and employee retention post-pandemic. The market is highly competitive, with key players engaging in strategic collaborations, mergers, and acquisitions to expand their market share and profitability.
Global Office Space Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Current Market Scenario
-
1.2 Technological Trends
-
1.3 Industry Value Chain Analysis
-
1.4 Government Regulations and Initiatives
-
1.5 Insights into Office Rents
-
1.6 Insights into Office Space Planning
-
1.7 Impact of COVID-19 on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Building Type
-
2.1.1 Retrofits
-
2.1.2 New Buildings
-
-
2.2 By End User
-
2.2.1 IT and Telecommunications
-
2.2.2 Media and Entertainment
-
2.2.3 Retail and Consumer Goods
-
-
2.3 By Geography
-
2.3.1 North America
-
2.3.2 Europe
-
2.3.3 Asia-Pacific
-
2.3.4 Rest of the World
-
-
Global Office Space Market Size FAQs
What is the current Global Office Space Market size?
The Global Office Space Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in Global Office Space Market?
CBRE Group Inc, Mitsui Fudosan Co. Ltd., Jones Lang LaSalle Incorporated , IWG Plc. and Regus are the major companies operating in the Global Office Space Market.
