FTI Experts’ Hub: Brace Yourselves for a Full Return to the Office by 2028

“I strongly believe within five years not only are we going to be back in office five days a week, but we’re going to be business attire. I’m talking suit and tie, Monday through Thursday, and it’s going to be business casual on Fridays,” FTI Consulting Senior Managing Director Mark Dunec told Commercial Property Executive Senior Editor Laura Calugar during the latest podcast in our FTI Experts’ Hub series.

This prediction is rooted in Dunec’s belief that businesses—including CRE ones—are suffering from the lack of face-to-face interactions and relationships. Not being in the office is also affecting the process of forming cohesion among colleagues. The non-stop learning environment in the office can’t be replicated while working from home and that has a severe impact on work culture. Because of remote work, the office sector is under immense pressure, with office property valuations plummeting in the past few years.

READ ALSO: Sobering Outlook for Office Values—Global Investor Survey

Mark Dunec expects to see a full return to the office in five years. Image courtesy of FTI Consulting

“There’s short-term issues as it relates to the office sector. Yes, some companies have reduced their footprints because of COVID-19, but I think we’re going to see a return to office,” Dunec said in this special podcast edition. In fact, many firms are already mandating more employees to return to the office.

At FTI, Dunec specializes in valuation, acquisition due diligence, financing, recapitalization, asset and entity restructuring and repositioning. He has more than two decades of CRE experience, and currently teaches graduate real estate courses at University of Miami in Florida and Montclair U in New Jersey. 

Here’s a sample of the topics he touches on in this podcast:

• Is CRE business suffering from the lack of face-to-face interactions and relationships? (1:33)
• Will companies that have reduced their office footprints be looking for more space? (4:53)
• How external factors impact CRE properties (8:29)
• Heavyweight office landlords are already delinquent or have defaulted on their loans. What signals does this send to the market? (11:02)
• Expectations when it comes to modern office assets and their values (14:14)
• Amid cyclical headwinds and longer-term structural changes, when will office property values stabilize? (18:43)
• Who will be the winners five years from now? (21:20)
• How is the younger generation perceiving what is going on in the real estate market today? (23:14)

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