3 Questions Your Company Should Ask in 2021
As we exit 2020, many businesses are looking back at the events of the past 9 months and probably saying “now what?” Depending on the location of your business or the areas you operate in, the impact of the COVID 19 pandemic may be different. If your business has offices in states that are still experience lockdowns or other restrictions, there can be a more severe impact. Many businesses have effectively shuttered their physical offices and the post pandemic office may never be the same.
At Cresa, we are looking into 2021 with some optimism and
see opportunities in the Commercial Office Space sector. Here are 3 questions for your business in
2021 that can help you rethink your office space requirements.
Will my company continue having employees work from home in 2021?
Last March companies most likely sent their workforce home
to work. This was a dramatic and rapid
shift for businesses and led to many companies scrambling to adjust to a
virtual work environment. The
uncertainty about COVID 19 is still with us today and has led companies to
analyze whether a work from home policy can be sustained.
Cresa examined 2019 and found that 3.6% of US companies
worked from home at least half of the time.
An article published by Stanford in June (https://news.stanford.edu/2020/06/29/snapshot-new-working-home-economy/)
said that the number of the US labor force working from home rose to a
staggering 42%. Indications are that
companies have found that much of their workforce has not only adapted to
working from home, but they are satisfied.
Remote work saves money for most employees. Commute time, childcare costs, fuel and
vehicle maintenance costs are reduced, and a healthier work/family balance is
often the result.
There are some downsides to remote working as well,
including hands-on coaching, human face to face interaction, and a possible
negative effect on your company culture.
The main reason you want to answer the question of whether remote
working is the way ahead in 2021, is that you may need to make a change with
your current office space soon. If the
answer is “yes” with your company continuing with some or all of their
workforce working from home in 2021, then you need to rethink your office
space.
What commercial office opportunities await in 2021?
Cresa and our team are constantly monitoring the office space environment in the Washington DC, Maryland, and Northern Virginia area. We see many trends that lead us to believe that opportunity is out there.
1) Inventory is very high.
2) Prices are currently stable, but excess inventory will likely drive rent down in 2021.
3) Landlords are offering substantial incentives to tenants resulting in free rent and construction/build-out allowances increasing 40% on average since March 2020.
These opportunistic conditions will eventually end as the
vaccine program becomes widespread and offices begin to reopen. Reconfiguring existing or examining new
office space to meet your evolving business requirements should be a priority for
the first half of 2021.
If your business is starting to expand, we see real
opportunity to find the right sized space that may not have been available
before the pandemic. We specialize in
examining your business objectives and matching those objectives to the office
space that is a perfect fit.
If your lease is ending, the same opportunities exist for
finding a better office space due to higher inventory being available.
If your company is downsizing its office space, we can also
craft a plan to allow you to find the office space that’s right for your new objectives.
Does my company need a new real estate strategy in 2021?
If your company is going to be changing their workforce behavior and is looking for opportunity in 2021 to leverage the current office space market, then it’s probably time to look at a comprehensive real strategy that includes a business first approach.
We believe that the economy of 2021 will be one of fast-paced change. How do you ensure you are prepared for these changes while optimizing your operations and opportunities? We believe it’s that critical intersection of operations, location, labor, and physical space that makes all the difference in shaping the best possible outcomes for occupiers.We’ve found that cultivating a space that works, starts with a business-first approach to align labor, technology and operations with business strategy and corporate vision. Workforce. Workplace. And the work. They all need to be aligned so your business is on target for tomorrow and what comes after that. Our real-world experience gained from years of working in industry means we consult with you to see all the angles. Operations, labor, location, logistics and real estate. Then, we strategize a forward-looking real estate solution to enable a business plan that reduces operating expenses and optimizes leverage for incentive negotiations. We develop a full strategy and put it to work through implementation of integrated services or the select services you need.
If we can help you after you have asked these questions for your company, please visit www.tenantbroker.com and start a conversation with me!
exclusively representing corporate tenants on all commercial real estate needs.
Commercial Tenant Broker
2 Bethesda Metro Center, Suite 900
Bethesda, MD 20814
301-842-6542
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