The COVID-19 pandemic changed the world in ways we could never have imagined, and the commercial real estate (CRE) industry is no exception. Fast forward to 2025, and we’re seeing the lasting effects of those changes, many of which are still shaping the way CRE brands operate, design spaces, and cater to tenants. While commercial real estate has shown remarkable resilience, the shift in how we work, live, and interact has left a permanent mark on the industry. Here’s how the pandemic continues to impact CRE brands and what they are doing to adapt to this new reality.
1. Remote and Hybrid Work Models: A Permanent Shift
Before the pandemic, the idea of remote work was a niche concept. Fast forward a few years, and hybrid work models—where employees split their time between the office and remote work—have become the standard for many industries. This shift has had a profound effect on office space demand, especially as businesses realize they don’t need the same large, traditional office footprints they once did.
For commercial real estate brands, this change has been a wake-up call. The focus is no longer on providing massive office spaces but on offering flexible, adaptable spaces that cater to hybrid teams. CRE brands are rethinking their portfolios, moving away from traditional office buildings and instead focusing on dynamic spaces that can easily be reconfigured to meet the changing needs of modern businesses.
2. Rising Expectations: What Tenants Want Now
Tenant expectations have evolved drastically over the past few years. Pre-pandemic, the main concerns for tenants were location, space size, and rent costs. Now, the priorities are more nuanced. Businesses are asking for more flexibility in leasing terms, tech-enabled spaces, and environments that promote health and wellness.
In response, commercial real estate brands are pivoting to meet these needs. For example, tenants now demand office spaces that are designed for hybrid work, with seamless video conferencing facilities, high-speed internet, and shared spaces that foster collaboration. Many tenants are also looking for properties that offer green features—like energy-efficient systems and plenty of natural light—that promote employee well-being.
As businesses shift to more flexible work arrangements, they’re looking for spaces that can adapt, giving CRE brands a unique opportunity to reimagine what commercial properties can look like.
3. The Rise of Co-Working and Flexible Spaces
One of the biggest trends in commercial real estate since the pandemic is the surge in demand for co-working spaces. As businesses embrace hybrid work, many are downsizing their office space and seeking more flexible options. Co-working spaces—where businesses can rent shared office spaces with flexible lease terms—have become incredibly popular.
For commercial real estate brands, this trend is a game-changer. Many are looking to incorporate co-working areas or flexible spaces within their existing properties. Some are even partnering with co-working operators to help fill vacant office spaces and create more adaptable environments. These flexible workspaces are now in demand not just from startups but from established companies who no longer need a permanent office but still want a physical space to collaborate when necessary.
4. Sustainability: More Than Just a Buzzword
The pandemic has also brought sustainability to the forefront of commercial real estate. As people become more aware of the environment and health, there’s a growing demand for commercial spaces that are not only eco-friendly but also designed with employee well-being in mind.
CRE brands are now focusing more on green buildings and sustainable development. This includes energy-efficient buildings, eco-friendly materials, and indoor air quality improvements. Tenants are increasingly looking for spaces that reflect their values, with sustainable features that support both the environment and their employees’ health.
Green certifications like LEED and WELL are becoming highly sought after, and commercial real estate brands that incorporate these sustainable features are seeing a boost in demand. In the coming years, sustainability will likely become a non-negotiable feature for many tenants, not just a nice-to-have.
5. Technology: The New Backbone of Real Estate
Technology, which was already growing in importance pre-pandemic, has become the backbone of the commercial real estate industry. From virtual property tours to smart building systems, technology now plays a central role in how properties are marketed, leased, and managed.
Virtual tours and digital leasing platforms have made the process of finding and securing commercial spaces much easier, especially as in-person visits were limited during the height of the pandemic. CRE brands have had to embrace these tools, and now they are here to stay. We’re also seeing the rise of “smart” buildings equipped with advanced technologies that make life easier for tenants, such as automated lighting, energy management systems, and even digital concierge services.
Moreover, the pandemic has made people more comfortable with virtual meetings and digital collaboration. As a result, commercial real estate brands are beginning to think about virtual or hybrid spaces, where digital environments complement physical offices, further blurring the lines between the two.
6. Adapting to Market Shifts and New Demand
As a result of the pandemic, certain sectors of commercial real estate have seen shifts in demand. While office space demand may have decreased, sectors like logistics, warehouses, and data centers are booming. The surge in e-commerce has created an increasing need for more distribution centers, often located in suburban areas where land is more affordable.
Commercial real estate brands have had to pivot quickly, repurposing office buildings into fulfillment centers or investing in logistics hubs. Mixed-use developments that combine residential, retail, and office spaces are also growing in popularity, as businesses and tenants look for more integrated, community-oriented environments.
Conclusion
The pandemic reshaped commercial real estate in ways that will continue to impact the industry in 2025 and beyond. From the shift to hybrid work models to the growing demand for flexible, sustainable spaces, CRE brands are being forced to rethink how they operate.
For brands that can adapt to these changes—by offering flexible, tech-enabled, and sustainable spaces—there are immense opportunities to thrive. The key to success will be understanding the evolving needs of tenants, embracing innovation, and staying agile in a world where the only constant is change. The commercial real estate landscape may never be the same, but those who evolve with it will be well-positioned for the future.
