Commercial real estate has been a reliable and profitable industry for decades. Business properties were recognized for their prestige; large-scale office buildings demonstrated the success of a company, especially given its location.
With digital technology rapidly growing, some employers were enabling employees to work remotely full time. When COVID-19 impacted the ability to commute into the office, it enabled most employees to transition to work-from-home opportunities to enable sufficient social distancing. While this initially began as a short-term strategy, some employees have been working remotely for well over a year. Not only does this demonstrate how companies can transition their operations to reduce their costs, but it changes the landscape for commercial real estate property. As a result, the work-from-home model has been getting increasingly more popular across the country.
Given the emphasis on work-from-home models, commercial real estate owners and investors are forced to evolve from their traditional
Adjust Your Commercial Real Estate Model
When working in any sector, especially commercial real estate, you need to provide your consumers with what they want, when they need it. One manner in which you can do this is by offering more flexible workspaces instead of the traditional office.
Understand the Needs of Companies and their Employees
Financial pressures are increasingly driving companies to seek alternative, smaller, and cheaper offices. As employees have been seeking more remote working opportunities, companies must adjust to remain competitive for new and existing talent.
Businesses also face demand from their employees to allow more flexible working, to give them the chance of a better work-life balance. Commuting has always been a source of frustration. According to a Regus research study, more than 20% of workers were considering quitting their jobs because of excessively long commutes, and over 27% of workers label their commute as a waste of personal and professional productivity.
Flexibility is the Future
The commercial real estate landscape will always require flexibility and change. In order to succeed in this space, owners and investors must respond to companies’ needs for more agile solutions that match the flexibility and speed they expect elsewhere in their business.
Consult with Our Skillful Commercial Real Estate Lawyers Today
At GKK, we welcome you to contact our team of real estate lawyers to determine the best course of action for your commercial real estate needs. We regularly advise clients throughout the lifecycle of their commercial real estate transactions. Contact us to schedule a meeting with a member of your legal team today. We have offices in both Los Angeles and Irvine to best serve our clients and have worked with clients throughout the US.