2020 has been anything but a typical year. While the retail sector has been significantly impacted by the coronavirus pandemic, what about the rest of the market?
Much of the country continues to suffer, but many sectors are recovering and bringing employees back to work. Here are some of the top predictions for office space in 2020, which will likely overflow into the coming year.
According to Jason Burian, managing partner at the Chicago office of CohnReznick, an advisory firm, technology clients will continue to generate demand for space in 2020. This is a trend that began in 2019, but is expected to continue through this year and beyond.
Technology isn’t something that is going to see a slump. In fact, COVID-19 has made people and businesses more reliant on technology than ever before. The organizations that create and manage those platforms and systems are booming.
Flexible Office Space
Flexible office space was something that was in high demand in 2019 with the explosion of nationwide firms like WeWork. But, some of those co-working spaces grew too quickly and outpaced demand.
There is still a need for co-working spaces in most major and mid-sized cities, but maybe not the corporate types like WeWork. Instead, there will be more opportunities for smaller operators to open up shop and put their unique spin on the business.
Changing Lease Structures
If 2020 has taught us anything, it’s that businesses need to be more flexible, and many will be demanding the same from their landlords in the future. In some markets, we might see some movement away from the traditional lease model in favor of a more dynamic arrangement.
Currently, landlords want leases that give them limited downside, which is understandable. But it’s not helpful for the client. Some new approaches might instead provide a landlord and unlimited upside by offering more flexibility.
Leveraging More Proptech
If your business hasn’t done so yet, now is the perfect time to adopt and begin using property technology applications – or proptech. In the office sector, proptech platforms can help an office tenant improve their experience and that of their customers and employees to make a space more comfortable, inviting, user-friendly, and energy-efficient.
Moving Away from Downtown
It used to be hip and cool to have an office “downtown.” Now, it’s more cumbersome and costly. According to Rhett Crocker, president of design firm LandDesign, more office investors are focusing on properties in suburban areas instead of in central business districts (CBDs).
While not all suburban areas are perfect for an office environment, many are. Those that are in growing markets, have access to mass transit, and have a workforce living nearby are excellent opportunities.
Whether those commercial real estate predictions come to pass or we experience something entirely different, you need an experienced professional you can rely on in your corner. Caldwell Commercial Real Estate Services wants to be your trusted partner in Charleston, SC.
Our commercial realtors and property managers have over 80 years of combined experience that they are ready to put to work for you. Contact us today to learn more about our services.