Investing in Office Buildings: Buy, Build, or Renovate?

The commercial real estate world is shifting—again. After years of remote work dominating the corporate landscape, more companies are calling their employees back to the office, at least part-time. That means demand for office space is picking up, but it’s not business as usual. Employees want better work environments, companies want more flexibility, and real estate investors need to be more strategic than ever.

If you’re a real estate firm looking at office space deals, the question is: Should you buy, build, or renovate? The answer depends on your financial goals, market conditions, and timing. Let’s break it down.

When Buying an Office Space Makes Sense

Buying an office building can be a great move—if you find the right deal. In some cities, office prices are still lower than pre-pandemic levels, and if you scoop up a property at the right price, you can see significant returns as companies re-establish their office presence.

Why Buy?

• You want something move-in ready (or close to it).
• Market conditions are in your favor—think lower prices, high vacancy rates, and distressed properties that can be turned around.
• The location is prime and has long-term value.
• You see a value-add opportunity by modernizing the space to meet today’s workforce demands.

Example: If a corporate hub like New York City or San Francisco still has underpriced office buildings, buying could be a great play—especially if companies keep bringing employees back in larger numbers.

When Building a New Office Space is the Best Option

If you’ve got the capital and patience, building from scratch gives you full control. It’s a long-term move, but it allows you to create the exact space tenants (or your firm) need.

Why Build?

• There’s little available space in key locations—especially Class A office buildings with modern amenities.
• You want a state-of-the-art, ESG-friendly property with sustainability at its core.
• Branding matters—owning a high-profile building can boost a firm’s reputation and attract top-tier tenants.

Example: High-growth cities like Austin and Nashville have seen an influx of new office buildings because demand is outpacing supply. If you’re in a similar market with long-term potential, building could be the right call.

When Renovating an Office Space is the Smart Play

A lot of older office buildings don’t meet today’s standards. Employees want more open space, natural light, collaboration zones, and tech-enabled features. Instead of starting from scratch, renovating can be a cost-effective way to reposition an underperforming asset.

Why Renovate?

• You own or can acquire an outdated office building in a strong location.
• You can upgrade to meet today’s workforce trends—hybrid workspaces, wellness amenities, and better energy efficiency.
• Incentives exist—many cities are offering tax breaks for sustainable building upgrades.

Example: In Chicago, older office spaces are being revamped with modern layouts and better amenities to attract companies and bring employees back to work. If your firm can transform an aging building into a high-demand space, renovation is a winning strategy.

Case Study: How Tishman Speyer Successfully Transformed an Office Space

One of the best examples of a real estate firm making a smart office investment in recent years is Tishman Speyer. The firm acquired and revitalized the historic The Spiral building in Hudson Yards, New York City (“an unprecedented work of human-centric design”).

What They Did Right:

1. Modernized Office Experience – The Spiral was designed to blend indoor and outdoor spaces, offering terraces on every floor to enhance workplace well-being.
2. Focused on ESG & Sustainability – The building was designed with energy efficiency in mind, appealing to companies prioritizing ESG.
3. Attracted High-Profile Tenants – Pfizer signed on as a major tenant, proving that top companies still want premium office spaces.

Why It Worked:

• They recognized that companies want premium, flexible office spaces that make returning to work appealing.
• Their ESG-friendly approach aligned with corporate sustainability goals.
• The prime location in Hudson Yards ensured long-term value and demand.

This is a great example of a firm combining new construction with a forward-thinking office design to meet modern workforce expectations.

Final Thoughts: What’s Right for Your Firm?

There’s no one-size-fits-all answer when it comes to office space investments. But here’s the big takeaway:

• If prices are low and you need space fast → Buy.
• If you want full control and have time → Build.
• If you have an outdated space in a prime location → Renovate.

The office market isn’t dead—it’s just evolving. The firms that make smart, forward-thinking investments will be the ones that come out on top.

Is your firm considering an office space investment? Let’s talk strategy.