Commercial property rents are not cheap, especially in today’s economy. We’ve also seen a major change in the way business is conducted since having to adjust to remote work environments during the pandemic.
Not all businesses are going back to the office or requiring the same space as before. Additionally, many current or former employees have relocated since the pandemic and are either working elsewhere or wish to remain remote only. We’ve never seen such a massive change in employment structure and shifts in relocation as before.
What are the results of all this? Companies are having to weigh their options and decide how much space is really necessary to rent for ongoing daily operations.
Assessing commercial real estate rental amounts
Companies are reassessing their rental space and what is truly necessary for meeting their goals. Since the pandemic has shut down countless offices, not every employer wishes to continue their commercial lease and continue paying their regular rent amounts when they’ve managed to cope working collaboratively from home ever since.
Many of these businesses have been able to see first-hand the cost and time efficiency of hybrid and remote models. While there are downsides to every change, when it saves the company time and money, it is difficult to reacquire those costs again. Cost-efficiency is becoming an increasingly higher priority as prices everywhere are on the rise.
Is remote work sustainable and productive long-term?
Some employees are more productive at home than in the office while others are not. Depending on each individual situation, some employees may get more done working from home than at the office.
There are also those who have too many distractions or responsibilities at home that would interfere with their work schedule. For companies who are returning to the office and not allowing flexibility to former remote accommodations, some employees may decide to seek new employment that remains remote.
Employers are seeking out their commercial real estate leasing options as their needs have changed.
Weighing the pros and cons matters
When considering what’s best moving forward post-pandemic, consider how the pros and cons of downsizing your space affects everyone. How do the scales tip? In favor of making these changes permanent or returning back to the way they were before? You may find it difficult to find employees that want to return to the office or those who are needing the flexibility of remote or hybrid models. There are also employees who are happy to return back to the office and keep things the same.
Undoubtedly, the commercial real estate space is changing as more companies are re-assessing what is best. Many companies are considering alternative work model options to suit the trends that have emerged to stay competitive and retain the workers they need while attracting new talent.
Plaza Companies is the Premier Choice in Commercial Real Estate
Plaza Companies is a full-service real estate firm specializing in leasing, management, construction, and development of some of the most innovative commercial real estate projects in Arizona.
Plaza Companies is successfully competing in the commercial real estate space. Remaining compliant with all accessibility needs is a top priority along with all other legal obligations. Our firm specializes in staying connected and conscientious to all emerging trends.
Contact us today to learn more about leasing the right space or anything else we offer!