While companies are realizing that employees don’t need to be in the office like in the past, there are still benefits of in-person meeting, collaboration, and team-building that shouldn’t be lost. Additionally, if organizations find out that they have the opportunity to cut the typical overhead expenses of an office space, they definitely will. For landlords, this can be a scary thought.
Rather than signing strict leases for 5 years on a large, high-rise office building, companies will turn more towards shorter leases with less square footage that can continue to be reimagined as the workforce evolves. As we move towards a new era in how people do their jobs, it will be crucial for companies to be able to pivot as needed.
While this might sound bad for commercial real estate, it is actually the other way around.