Return to Office: Germany

The office market is experiencing a paradigm shift: Office function and design are being redefined by the digitalization and flexibilization of the working world. Hybrid workplace models (New Work) are evolving into the new norm in a knowledge-based economy and against the backdrop of demographic and cultural change in the labor market.

The one-size-fits-all solution applied to office design is a thing of the past. Instead, companies are now engaging in developing individual and holistic workplace strategies tailored to their specific framework conditions and requirements. In these endeavors, they are adopting a proactive approach by joining forces with their employees to meet the challenges, opportunities and risks of hybrid workplace models.

Against this backdrop, not only employees and companies, but also property owners, asset managers and investors are facing new challenges with significant consequences for the risk profile of the office asset class as a whole.

The report highlights various factors that influence the successful implementation of hybrid workplace models and the resulting long-term opportunities and risks for the German office market.