There is so much changing in the office market, Scott Stuckman, executive managing director at USAA Real Estate Co., said to kick off the capital markets panel at NAIOP O.CON, adding most notably that traditional office buildings aren’t as successful as they once were. Stuckman moderated the panel for panelists Jay Borzi, senior managing director, Eastdil Secured; John Miller, senior managing director and regional director of Southern California at Tishman Speyer; and Kev Zoryan, managing director at Morgan Stanley.
According to the panelists, the demand for and development of creative office is the most significant trend dominating the market. Miller says the market for creative product is frothy, and he finds the best value comes from new construction creative office because rebuilding and renovating existing office space is very expensive. He also adds that creative office needs to shift from the concept of two-story buildings to concepts that utilize high-rise space. While the office market is shifting toward creative properties, Miller says, “the rise hasn’t lifted all boats,” and there is still demand for traditional office spaces.