The economic recession of 2008 may be behind us now, but it has left lasting effects on the business sector of the country - including the commercial real estate market. Since then, there have been many new trends in office space design, as well as new views in what commercial office space should include. These changing viewpoints in commercial office space are largely a result of up and down real estate markets. Today, landlords are doing their best to bring in tenants by offering both what they want and need.
Today’s Market Is A Tenant’s Market
In most commercial real estate markets across the country, gone are the days where companies could not find space to lease. Most companies are finding at least a few options, making it a tenant’s market in most instances. Landlords also know this. The result, as recovery from economic recession is still underway, has been many landlords working harder to understand the needs of their tenants, and provide them with what they need as a means of keeping spaces occupied.
Landlords Cater to Tenants
As work environments themselves have begun to change, with companies offering employees more comforts and necessities for employee retention, landlords have begun keying in on this. Added inclusions, like more parking, dedicated lobby space, open meeting areas, conference rooms, better hospitality facilities, and many more amenities, are becoming the norm - rather than the exception. Landlords are adopting the idea that to get - and retain - better tenants, they need to offer a better building, and in doing so, both parties benefit. Landlords who go the extra mile to provide things that companies might previously been forced to bargain for, are having an easier time filling those spaces. As a result, these trends are slowly changing the landscape of office space leasing.
Changing Office Spaces
Another area that is undergoing constant change, is the physical shape of commercial office space. This is largely due to improved technology, but also in response to preferred workplace environments. Better, and less expensive wireless technology has made it possible to put older buildings, previously unsuitable for cable, back into use. This increases available space in some areas. Likewise, the trend of open offices is on the downswing, with companies moving in a slightly different direction. This includes a combination of larger, informal work and meeting areas, and smaller, individual or small group workstations - all equipped with necessary hub spots to enable freedom and comfort, without sacrificing accessibility. Designs that support paperless offices, sustainability through better efficiency and comfort combined with functionality, are in high demand. As landlords see the positives in this for both them and their tenants, they are stepping up to make changes first, so they have something better to offer. Flexible spaces that are easily modified by tenants, are also in high demand, as companies do their best to cut leasing costs by increasing the efficiency of their leasing dollar.
As commercial leasing trends keep moving toward efficiency - both in work space amenities and cost per square foot - businesses are seeking office space that provides a lot more bang for the buck. To combat fluctuating commercial real estate, landlords have responded favorably, as building owners compete to keep their commercial office space leased. When landlords pay attention to market trends, and make their own changes along with these changes, the end is a “win-win” situation for all!