The flight to quality in the real estate market
In times when corporate real estate occupants have not expanded their occupied area, the flight to quality movement has prevailed in the sector.
Flight to quality can be translated as ‘‘leap to quality’’. It would be something like upgrading your hotel room.
This movement happens in the real estate market when the current economic scenario is unstable. Since there are several options for vacant buildings, that is, more supply than demand, there are good opportunities for occupants to take a flight to quality and migrate to a newer building, with better infrastructure.
This is observed, mainly, in the main markets of the country. In the city of Rio de Janeiro, for example, the predominance of the flight to quality movement, in which occupants leave lower quality buildings to settle in class A and A+, is clear. The latest transactions carried out by Cushman & Wakefield reflect this movement.
Recently, an important reinsurer, following a strategic move, sold the historic property it occupied in the capital of Rio de Janeiro and moved to the Ventura Corporate Towers.
Another company, this one in the maritime logistics segment, expanded its operation to double its size in the Ventura Corporate Towers, one of the best corporate buildings in the market.
What are the occupants looking for?
Occupants were already looking for differentiated workspaces before the pandemic. However, the flight to quality trend has been growing at a rapid pace since 2020.
A study by Cushman & Wakefield revealed that amenities are important strategies to support the employee experience in the office and, consequently, attract occupiers.
What are the top amenities that occupants are looking for?
Integration: spaces for experience, collaboration and socialization
Convenience: solutions that support employees in their busy lives
Commuting: strategic location, including parking or nearby public transport
Wellness: initiatives that support ESG and wellness around inclusion, health, sustainability, etc.
Safety: measures that provide safety and protection for occupants
Technology: Solutions that incorporate technology, such as user experience apps
Retrofit is indispensable
Owners of outdated properties should rethink their spaces, since class A and A+ buildings tend to have lower vacancies, especially in a scenario that favors flight to quality.
The technique of modernizing facilities, known as retrofit, can be a solution.
How to make a strategic flight to quality?
Our commercial team can help you find the ideal property for your needs. We have access to the best properties, regions, prices, and the expertise of the global leader in corporate real estate.
In addition, our Project Development services can help you with your office project, managing the entire project and work.
