How Commercial Real Estate Leaders Are Maximizing Value
Northwest Bank-backed research reveals how commercial real estate leaders are maximizing value from office holdings
The past year has seen a resurgence in demand for office space. Here’s how top CRE leaders are responding
Key takeaways:
- The past year has seen a resurgence in demand for office space and CRE leaders are focused on acquiring and developing office projects.
- The most successful organizations are focused on meeting tenants’ changing needs, from providing flexible layouts to investing in shared amenities that attract top talent.
- Northwest Bank’s 2025 State of Commercial Real Estate Survey shares insights and strategies into how CRE leaders can thrive amid this renewed interest in office space.
Northwest Bank’s 2025 State of Commercial Real Estate Survey revealed that 83% of commercial real estate (CRE) investors who plan to acquire new properties in the coming year are seeking to acquire office projects, compared to just 68% for industrial, 65% for multi-family and 64% for retail. And, even more surprisingly, 73% plan to develop new office spaces.
For the past few years, CRE leaders have faced one disruption after another — but perhaps no segment of the market has seen as much uncertainty as office space. CRE leaders have not only had to adapt to plummeting demand for office space in the wake of the pandemic, but they’ve had to adjust their office holdings to meet the unique needs of tenants with hybrid workforces.
The return of the office
As top employers initiate return-to-work mandates, leaders that bet on office space are poised to realize big wins. And, across the industry, CRE leaders are seeking out opportunities to expand and/or diversify their office holdings.
“We’re seeing renewed demand for office space across the board: From tenants, from investors and, now, from financial institutions,” says Shawn Dorsey, Executive Director, CRE Banking at Northwest Bank. “For the past several years, capital for office developments has been scarce. Value-add and core-plus investors are now returning to the market, and project financiers are hard-pressed to ignore the value proposition. Those investors who have operational, leasing and development experience in this space are finding appeal in quality assets in quality markets.”
Reshaping the future of office space
While CRE leaders are experiencing a surge in demand for office projects, that doesn’t mean they’re returning to business as usual. Tenants' needs have changed significantly, with growing demand for sustainable and eco-friendly upgrades, customizable layouts and shared amenities that support talent attraction and retention.
At the same time, top CRE leaders are thinking outside the box on how to maximize value from their investment. Whether that’s looking at office holdings in new locales, exploring opportunities to modernize outdated spaces or pairing office projects with retail spaces for community-building, they're leveraging every opportunity to better serve their tenants and the surrounding communities.
Learn how to prepare for the future of the office
Northwest Bank’s 2025 State of Commercial Real Estate Survey takes a deep dive into the trends shaping office development and acquisition today — and the steps leaders can take to prepare their portfolios accordingly. We explore how CRE leaders can best serve today’s tenants, how to find untapped opportunities in underserved markets, and share financial considerations and strategies to help set your projects up for success.
Download Northwest Bank’s 2025 State of Commercial Real Estate Survey.
