The real estate markets are likely as hazy at the economic outlook as we depart the Year 2020, but not the pandemic and unprecedented related difficulties.
Unlike the buoyant residential market – where buyers appear to be seeking more space and comfort – anticipating more time at home, the commercial market is in a holding pattern. Will people return to work environments? Is additional space for distancing affordable? What businesses will thrive vs. dive because of these unique conditions.
Commercial office demand and absorption over the past five years has been just fair due to additional trends, including technology and demographics. The Edge Group, Inc. was pleased to broker two 20,000 plus square foot transactions this year. Demand, however, has been more based on smaller and more affordable spaces. Decision making by larger office users seeks to balance safety, productivity and costs.
This recent article in Work Design Magazine addresses office user considerations in considering present or existing space. The photo above demonstrates the need for well-spaced functions and a more casual and comfortable environment.
“The physical office, pre-COVID, reflected an organization’s brand and culture; provided employee experiences for connectivity and innovation; and served as an attraction and retention magnet for the best talent. The post-COVID office must prove its reason for being, specific to each organization’s requirements.
“There are few scenarios where companies plan to bring their entire workforce back to the office space. CoreNet Global reports that 69 percent of respondents in their most recent survey plan to reduce their office footprint, (Harrison, 2020). What physical attributes will characterize the future office space once the immediate pandemic concerns have been dissipated?
“Office space planning considerations in the post-COVID landscape include decreased densities, increased circulation and compartmentalization of space – that is easily expanded or divisible in the future. The building’s commitment to preparedness will incorporate every aspect of the employee’s journey from their parking spot to their desk.”
— by Cynthia Milota
Certain office spaces, as with this suite at Gateway II in Lowell, have more ability to meet social distancing and
open space than others.
For additional information, phone (978) 458-8822
The Edge Group, Inc. keeps track of industry trends and understands that office users need choices and prospective. We also are able to weigh the position of owners, who have their own financial needs and obligations. As in every other economic sea change, the market shifts its access, thus presenting challenges and opportunities. A good real estate broker/advisor, can help you to navigate these shifts to your advantage. Feel free to contact The Edge Group, Inc. for your office needs analysis.