After several years of hybrid experimentation, the office market is still in reset mode. Vacancy remains elevated, sublease space is reshaping availabilities, whereas tenants are rethinking every square foot. There’s a clear divide emerging between buildings that deliver a commute-worthy experience and those that don’t, with flex options, spec suites and hospitality-style amenities increasingly setting the tone.

In this episode of Step Into My Office, CPE’s Olivia Bunescu talked with Friedman Properties’ Vice President of Leasing and Acquisitions Brian Chernett about the current market fundamentals and how those are unfolding, specifically across the company’s portfolio. Drawing on Friedman’s concentrated mixed-use footprint in Chicago, Chernett explained how a tightly defined portfolio can weather market volatility and why curated experiences have become central to their strategy.

He also touched on how tenants are using office space today: from small and mid-sized users driving leasing velocity to companies testing flexible layouts before committing to a space long-term. The reality of today’s office is a “tale of two markets,” dividing amenity-rich trophy and Class A assets from older commodity buildings that struggle to keep up.

Here’s what they discussed about:

• Vacancy, sublease space and momentum (01:17)
• A “tale of two” office markets emerges (02:42)
• How RTO policies are reshaping demand (04:32)
• Which tenants are expanding—and which are waiting (06:23)
• How workplace design and decision-making are evolving (07:09)
• Inside Friedman Properties’ River North ecosystem strategy (11:37)
• Historic buildings, modern systems and tenant experience (16:06)
• Acquisition red flags and “highest and best use” (17:39)
• Two flavors of flex and what tenants really want (19:27)
• Office sector outlook and why 2026 could be pivotal (24:05)