In a recent article published by Law360, Charleston Partner Tim Zwerner shared insights on the evolving commercial office market, particularly the continued strength of Class A spaces. In 2024, demand for high-quality office buildings in prime locations soared, driven by companies returning to in-person work and a growing preference for modern, well-located spaces.

The demand for Class A office space has surged in certain markets, making it increasingly difficult for tenants to secure leases. Secondary and tertiary markets, with a more limited supply of Class A properties, are facing particular challenges, leaving tenants struggling to find suitable rentals. Tim notes that this heightened demand has intensified competition for premium office space, both in major markets and in less-developed areas.

"Office has been a tale of two cities. It's very market-specific and asset class-specific," Zwerner said. "I think that Class A in gateway cities and in secondary and tertiary markets will continue to perform well."

While demand for Class A office space remains strong, Class B properties face challenges, with many being torn down for luxury condo developments. Companies are also focusing on improving office amenities to encourage employees to return, though the ability to offer these perks varies by market. This shift highlights the growing importance of high-quality, experience-driven office spaces in today’s real estate landscape.

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