How Landlords are Pivoting
for the Future of Hybrid Offices
for the Future of Hybrid Offices
For the most part, the commercial real estate industry has been relatively unshakeable. That is, until COVID-19 hit. With the switch to hybrid and remote offices, commercial landlords and investors have been left wondering: Are traditional office spaces no longer viable?
While hybrid and remote options are not new by any means, there has obviously been a huge shift in how offices are operating. Long gone are the days that employees are forced to commute, share cramped cubicles, and work the same 9-5 as everyone in their office. Instead, companies are starting to reimagine the office space and allow more flexible working options for almost everyone.
While hybrid and remote options are not new by any means, there has obviously been a huge shift in how offices are operating. Long gone are the days that employees are forced to commute, share cramped cubicles, and work the same 9-5 as everyone in their office. Instead, companies are starting to reimagine the office space and allow more flexible working options for almost everyone.
How Traditional Offices Will Die Off
This flexible space allows for great collaboration and functiontionality.
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.
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.
The Upside for Landlords
Landlords will be able to offset the risk and potential turnover of their business tenants by increasing rent and being flexible in more ways than one. By allowing for a flexible space (whether that’s transforming the building yourself or allowing your tenants to make their own changes) and being extremely accommodating, you can form a great relationship with your tenants - one that will make them continue to re-sign year after year.
Even if a commercial tenant decides to move to another location, landlords can already be setup for success with a space that can conform in multiple ways. The more flexible a space is, the more potential clients a landlord will have.
Even if a commercial tenant decides to move to another location, landlords can already be setup for success with a space that can conform in multiple ways. The more flexible a space is, the more potential clients a landlord will have.
Ways Landlords Can Anticipate a Hybrid Office Tenant
One of the biggest ways landlords can anticipate the need for flexible office space is by using technology. Just like any other industry that grows and expands, commercial real estate can greatly benefit with the use of tech and digital products like video conferencing tools, desk and workspace management software, and even smart security features.
Big corporations like Google have been among the first to utilize office space with a purely collaborative focus, including whole restaurants and gyms among co-working spaces. The idea is to take the standard, unexciting floor plan, and turn it into a space that is more hospitable to employees (with the end goal of being more useful and encouraging more productivity overall).
With a space designed more about usability rather than tradition, businesses can benefit from happier and better supported employees.
Rather than turning the other cheek as commercial real estate takes a turn, landlords should embrace the evolution and ride the wave as we move towards an exciting future of office space.
With a space designed more about usability rather than tradition, businesses can benefit from happier and better supported employees.
Rather than turning the other cheek as commercial real estate takes a turn, landlords should embrace the evolution and ride the wave as we move towards an exciting future of office space.
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At inspace our mission is to help companies provide the best experience to employees working hybrid, remote, or in the office.