Artificial intelligence is driving a surprising surge in office demand, according to Newmark’s Liz Hart, who says tech firms and startups are expanding their footprints rather than shrinking them in a return-to-office revival.
Newmark is a global commercial real estate advisory firm that counsels Fortune 500 occupiers and major landlords on leasing, strategy and transactions. Hart, the president of leasing, runs the firm’s North American leasing business — in other words, she sits on the live tape of tours, proposals and signed deals coast to coast.
Hart told FOX Business’ Stuart Varney on “Varney & Co.” that 70% of tenants touring office space across the U.S. are looking for the same or larger square footage.
“What the numbers are showing us,” she said, “is that what Jamie Dimon says is correct — tenants are looking to grow and have their employees back in the office.”
JPMorgan Chase CEO Jamie Dimon has been blunt about why it matters to be in the room: employees learn by osmosis and through “accidental” hallway collisions — the kind you don’t get “in a basement on Zoom.” His point is that the old apprentice system works best in person — and it sets the table for what we’re seeing in office demand.
Hart argues that the office remains central to innovation, especially in the age of artificial intelligence.
“People are looking to solve bigger and different problems,” she said. “That’s much easier to do when you’re in person.” Hart notes that spontaneous hallway encounters often make it easier to solve problems together.