With businesses reopening their doors for staff and patrons at record speeds, commercial real estate is hot! To accommodate new workplace expectations, the most successful commercial property managers are embracing some new trends for their office and retail spaces.
Consider the New Norms for Office Space
Occupants in offices across the nation are reevaluating the flexibility of their workspaces to create a better balance of work-from-home days and in-person days. More workers are working from home at least part-time, so spaces may be smaller, divided off, or configured into multiple-use zones.
Recent polling from Gartner indicates that 48 percent of employees will continue working from home in the upcoming years. These statistics are up 18 percent versus just two years ago. That being said, owners who want to be on the cusp of protecting the health and safety of their occupants should prepare to accommodate these needs and meet current guidelines. Property managers should learn how to design offices for lower stress to help ease the transition to in-person work.
Leases Will Go Short-Term & Subleasing Opportunities Will Grow
While industries are coming back to life, many companies seeking office space face financial uncertainty. In light of this, many businesses will be working towards maximizing flexibility for staff, whether investing in a new space, relocating an existing one, or reopening their operations. This is likely to see an emerging trend of investors looking for short-term lease options.
Companies that opt to keep all or the majority of their workforce at home temporarily or permanently will likely be attracted to commercial office space that they can sub-lease at least partially if necessary. While these may only be short-term agreements, companies expanding will be looking at options beyond traditional leases to consider.
Adaptive Reuse is on the Rise
Many of the historic buildings and office spaces in town have been lovingly restored and adapted to other layouts for reuse in new commercial sectors, and this trend will continue to dominate the scene. Many adaptive reuse projects are in the works that are taking existing buildings and reworking them to serve other markets and purposes.
This is likely to continue to be a force in the commercial property scene, especially as vacant spaces have new life and potential prospects introduced to them. For example, existing spaces set up as offices can easily be transformed to serve medical organizations, call centers, and even as multiple-tenant housing that addresses current shortages in residential real estate.
Increased Sustainability
As the world becomes more passionate about protecting natural resources, more homes and commercial properties utilize and implement green principles. Sustainability is also appealing to tenants and owners, as a good bit of money can be saved annually.
The government estimates that commercial buildings that utilize sustainable practices could see a 20 to 30 percent reduction in energy bills. Buildings in the commercial sector that aren't up to current sustainability standards are likely to be overlooked instead of energy-efficient ones. Take advantage of this demand with a few changes to attract eager tenants.
Office Spaces Operated by E-Commerce & Teleworking
Many commercial office properties are gaining popularity as more call centers and e-commerce operations search for space. E-commerce will continue to thrive, and data and logistics centers serve remote workers. Some vacant offices are being transformed into cold storage and warehouse space to meet the growing demands of restaurants and online retailers.
Teleworkers are pivotal to many operations, and data centers enable and allow for a rise in the popularity of remote meetings, digital conferencing, and streamlining sales, ordering, and packaging processes. Installing or updating digital infrastructure in commercial real estate tends to attract tenants to properties.
Touchless Technology Is Increasingly Important
Many employees and companies currently use technology to facilitate operations in the building to meet specific needs. Touchless technology is becoming just as crucial as remote collaboration and data exchange tools. The next chapter embraces touchless systems that create a safer and healthier work environment.
Commercial office space owners are preparing for the following stages in technological advances as communities embrace the new normal society. Building automation that is in demand includes app-controlled:
- Lighting Controls
- Blinds and Window Screens
- Auto Door Controls
- Smart Break Room Appliances
- Touchless Bathroom Installations
- Coffee/Tea Makers w/ Touchless Ordering
- Air Ventilation & Filtering Monitoring
Most importantly, streamlining these advances through one source eliminates the need for multiple remotes touched by many throughout the workday. Owners who desire solid tenant periods and fewer vacancies will get on board with touchless office technology.
Attract Tenants to Your Commercial Office Space
With a few changes to the current status of a commercial office property, more tenants are likely to be interested in becoming short or long-term lessors. Embracing technology, touchless environments, open spaces, and a few upgrades can bring investors and owners financial success and appeal to incoming and transitioning businesses across the board.
