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Hybrid Workspace Seems Here to Stay

The technology industry had been the dominant leasing force in the national office market in the years leading up to the pandemic. But leasing activity by tech companies has significantly slowed, as those companies largely embrace remote work.



Leasing activity nationally by the tech industry remains 35% below pre-pandemic levels, according to CBRE Group Inc.'s (NYSE: CBRE) Tech 30 report from late October.

What the tech industry more broadly does with real estate is a key bellwether for the office market's long-term health because tech has been the biggest leaser of office space for several years now. Tech companies also typically gravitate to the most premium office buildings in cities, for recruitment and culture purposes, which helps prop up those cities' rental rates and leasing revenue.

Although tech companies have embraced remote work, many chose to lease and purchase a lot of office space even after the pandemic hit. In September 2021, Google LLC agreed to buy a Manhattan office building for $2.1 billion and Meta signed on for more than 700,000 square feet of office space in Sunnyvale, California, about a year ago.


In what may be Charlotte’s most dramatic example yet of the impact of hybrid workspaces, SPX Flow Inc. in 2022 was considering the sale of its Ballantyne corporate headquarters and looking at smaller options.

The nine-story, pixel glass headquarters is surrounded by the anticipated Ballantyne Reimagined project.

Columbus McKinnon is currently leasing the top 2 floors of the SPX Flow Building.


SPX Flow says its shift to hybrid work is in line with global business trends following the pandemic. And it says that decision was an effort to acknowledge employee preferences to work from home, while still maintaining a collaborative workspace.


Although inperson employment is down, business travel is quickly building momentum post pandemic. Corporate hotel demand and revenue, on average, has eclipsed 2019 levels at uptown hotels. Group business — meetings and conventions — and leisure bookings have done the same in uptown during the past month.


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