Daniel Shapiro Tenant Broker

The “Hybrid Work Era” may require some different thinking by Commercial Real Estate leaders going forward.  This article from Forbes explores how Commercial Office Space thinking is changing due to hybrid in-office and at-home work policies that many companies will have for the near future.  Some highlights: JP Morgan’s chairman and chief executive estimates that the company may only need 60 seats for every 100 employees. For some companies, hybrid work may turn out to be a managerial nightmare. And those companies may pivot back toward a traditional in-office model after a trial period. Commercial real estate leaders should keep their eyes on a new iteration of coworking for companies looking to downsize: shared office spaces with partner companies. A smaller office in the suburbs may be able to accommodate those employees who still want to work in a dedicated office space, but without the full commute downtown. Commercial real estate leaders shouldn’t just focus on office sp...

We want to share this interesting article by Larry Kelso, senior vice president of Workplace Strategy and Program Management at Cresa.  He indicates that the next 6-18 months will include a “testing the water” phase for employers as the “hybrid workforce” emerges.  He looks at 12-18-24 months from now and lays out the various phases leading up to “stabilization” of the new normal for the office.  What this really means is that you may need to look at different solutions to configure your office space for this “new normal” that is coming.   Cresa can help you if your office needs to transform as we are coming into the post COVID environment.   We offer workspace solutions including change management, hybrid workforce strategy, occupancy planning, space management solutions, and overall workplace strategies.   If you would like to talk about this information or learn more about how we can help you and your employees, let’s start a conversation – www.tenant-...

The D.C. office market is showing signs of improvement, but vacancy continues to be high.  This article by Bisnow has some interesting statistics that foreshadow the direction of the future office market in the D.C. Metro area.  Some highlights: -            Office leasing activity in the District last quarter totaled 1.8M SF, including new leases and renewals, a 62% increase from the prior quarter, according to Q2 office market report.  -            The vacancy rate last quarter rose to 17.8%, up from 17.4% in Q1. -            A recent Q2 office market report said the District recorded negative absorption of 837K SF and its overall vacancy rate rose from 15.9% to 16.6%. But it found that the Class-A vacancy rate was 15.3%, while Class-B vacancy was 19.2%.  -       ...

Here is another interesting report from Cresa Research on recent commute and traffic patterns in the D.C Metro area.  It can provide some good information on the status of remote work in this area, and if companies are returning to the traditional office.  Some highlights: -       In Spring, 2021, 54% of employees expect to be in the office 3+ days a week. -  As of April 2021, total Metro station entries have reached 7.36 million. -  As offices begin to reopen and considering a record-high boom in car sales, traffic congestion is only expected to increase as employees return to the office. -  Commuters living within the “inner core” of D.C. will likely become more walker and biker friendly, already representing 17% of pre-pandemic commutes, as they look to avoid crowded metro cars. -  As employers return to the office and anticipate an increase in employees driving, parking allowances have become a popular incentive. Here is the full report. ...