The way we work is changing, and the office space evolves with it. Technology, globalization, and demographics spurred the evolution of our workplace. However, one of the most influential factors in this change was COVID-19. This virus caused significant disruption to business operations worldwide on a scale never seen before.
Hybrid Work Arrangements
When the pandemic started, many businesses asked their employees to work remotely to slow the spread of the virus. But after the situation improved, some companies realized that the work-from-home model had some advantages.
Around 74 percent of employers are using or planning to use a hybrid work arrangement with their employees. Even though 51 percent of employers prefer using the hybrid model, only 44 percent of employees prefer it.
How Commercial Real Estate Is Affected
The outbreak of COVID-19 left many industries scrambling to adapt. Commercial real estate is no different as businesses grapple with the new reality of working during a pandemic.
The office space sector has been particularly affected as companies rethink their workplace strategy in the face of social distancing guidelines and a potential economic downturn.
Landlords Should Invest in Technology & New Amenities
Landlords should consider investing in new technologies that will help improve the work-life balance of their tenants. Some examples include providing co-working spaces, installing more comfortable seating, and adding soundproofing to the office space.
Additionally, landlords should consider investing in new amenities, such as bike racks, yoga studios, and on-site restaurants.
The Industry Might See a Boom in Investing in Warehouses
While some office spaces are struggling with renewing contracts with tenants, it is another story for warehouses. E-commerce has seen unprecedented growth since the pandemic started.
Companies are looking to get their products closer to consumers by either building new warehouses or leasing space in existing ones. Retailers that started selling online at the onset of the pandemic drove the trend.
Attract Tenants with Pandemic-Safe Measures
The pandemic changed the way we think about office space. No longer is it just a place to go to work – now, it’s a place where we can stay healthy and safe.
As a result, more landlords are investing in technology and new amenities that will help keep tenants healthy. From touchless elevator buttons to air purification systems, landlords are doing everything they can to make their buildings as safe as possible.
Is It Still Worth Investing in Commercial Real Estate?
The real estate industry was affected by the pandemic, like almost every industry. Due to this, many experts ask if now is still a good time to invest in commercial office buildings.
The way we use office space may be changing permanently as more companies allow their employees to work from home. If this trend continues, it could mean that demand for office space will decrease in the future and that demand may move to another sector instead.
The truth of the matter is that many sections of commercial real estate are strong, growing, and trending to continue in this direction! But before making any decisions, you should always understand the current market conditions. Prices for some sectors of commercial real estate have dropped in certain cities, so it may be a good time to buy – or a good time to wait, depending on your location, goals, and industry.
Investing in commercial real estate is a big decision. It’s important to do your research and consider all of your options. To help you make an informed decision, consult with Brisky Net Lease for commercial real estate investment insights.