How the Rise of Remote Work Has Impacted Commercial Real Estate

Since the start of the pandemic in 2020, the workplace dynamic has changed drastically. Companies everywhere have shifted to work-from-home and hybrid work models, providing their employees with flexibility and inclusivity while eliminating the need to commute to the office. 

However, what seemed like a temporary fix for an unprecedented time has turned into a new way of life for many working professionals.

Two years later, employees have converted their second bedroom into an office and show zero to no interest in heading back to the office. (regardless of pizza parties in the breakroom and free lunch). This change has dramatically changed commercial real estate, office trends, and the workplace dynamic.

Here’s a closer look at some of the office trends you should have on your radar:

It’s a tenant’s market 

We’re not going to beat around the bush: As a Real Estate PR Professional, we know that commercial real estate is currently a tenant’s market. Gone are the days tenants are fighting for space downtown for a 10,000-square-foot space to accommodate thousands of employees. 

Instead, tenants are looking for a low-cost option to accommodate a smaller portion of their team and aren’t afraid to negotiate rent prices, leases, and amenities. This means renters need to be ready to come to the table with flexible agreements, amenities, and perks that will provide them with a competitive edge. 

Finding a balance between openness and privacy 

Working from home brought employees a new level of privacy. They no longer needed to worry about their coworkers bothering them or getting distracted throughout 9-5. This uptick in privacy has helped increase productivity levels and improve work ethic. However, employees still crave that human connection that helps them brainstorm and come to the table with new ideas. 

Businesses are looking for office space and want to provide a space with that same level of privacy their team has grown accustomed to. They want a private workspace, focus spaces, and smaller meeting rooms while keeping the workspace open and inviting. 

This balance between openness and privacy invites big ideas, innovation, and productivity and keeps the team motivated whenever they come into the office.

Leasing perks

In today’s world, you can’t assume you’ll get multiple offers from different tenants, and if you do, they want more than just a space to rent. 

Future tenants want leasing perks like free parking or a rent-as-you-go setup. The nice-to-haves are persuading them to make the purchase or rent the space. 

If you’re renting a commercial office space, you’ll want to emphasize the amenities, features, and perks of leasing the area. These perks will help business owners make a leasing decision that accommodates their needs and employees. 

Flexibility is a must-have

Tenants want flexibility and reassurance. They don’t want to know they aren’t stuck in a long lease they can’t break if something happens. This means many tenants will start asking for flexibility clauses. 

Whether it’s a flexible term, space, or an exit built into the lease: these add-ins provide businesses with the peace of mind they need to move forward with the building or office space. 

Employees want more choices

Not every team member is going to work in the office every day. If you have a hybrid team, team members may only be required to come into the office one to three times a week. Which means not everyone will ever be in the office at once. 

As the world adapts to a remote or hybrid workforce: business owners are searching for smaller, more affordable office space. These smaller spaces will be easier to maintain and more affordable. 

Take your commercial real estate to the next level

If you’re leasing out commercial space to tenants: It pays to stay competitive. The market has dramatically changed over the last few years, and we need to learn how to adapt to these ongoing changes.

At Rare Public Relations, we understand the ins and outs of the ever-changing workplace dynamic. We know that remote and hybrid work has dramatically changed the commercial real estate market, and we want to help you stand out from the rest of the competition.

We’re here to help, contact us today.