Forward thinking occupiers of office space are looking to take advantage of the reduced pricing and heighten concessions that currently exist in the market. The increased vacancy over the last 18 months is the silver lining for Tenants.
With the continued upswing in the economy, dynamic housing market, outstanding performance of the stock market, and historically low interest rates, absorption of office space will accelerate.
While many organizations will be working with a hybrid model, where a certain percentage of an organization’s employees are not in the office 100% of the time, companies will still require an office.
Will the footprint of the post Covid office be smaller or bigger? Less density will be desired which generally means more space, than pre-Covid. Pre Covid the typical model of office space was to place as many employees as possible in an open collaborative area, resulting in less square footage than an office dense environment. Architectural value engineering in determining an organization’s specific space needs is front and center when addressing a lease to find the ideal balance of offices and collaborative open area, with an eye to minimizing the square footage leased.
Hoteling or drop in space for the remote worker may be feasible, however the hoteling and drop in model has been met with push back, with the message from employees, that they want “their” specific space.
An organization’s brand, creativity, collaboration, and employee engagement are significantly enhanced with the community an office environment provides. The “fear of missing out” will be one of the motivators for getting back to the office. Folks will not be sitting at home in the long term and “office centric” will become the buzz word.
The market provides tremendous opportunities for occupiers of real estate at this moment in time. Forward thinking organizations will not want to miss this window, that will have a powerful and beneficial long term cost savings for a Tenants real estate.
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