Over the next few months, we are taking a closer look at specific property types and discussing how they’ve changed since the start of the global pandemic. Our first installment of the series focused on the uncertainty surrounding the hotel industry. This time, we take a look at the impact of the pandemic on the future of office spaces.
Office Spaces and COVID-19
Even though a lot of businesses are still working fully or partially remote, they are still paying rent for the space as a means of honoring their lease. As such, money is still coming in.
When the pandemic became a national concern in March, businesses were essentially forced to rework how they do business over night. The end result felt almost like a widespread experiment across the country. Businesses were suddenly left to see how they could fare in a fully remote work environment. In the months that followed, our grand experiment became the new normal. Many businesses have ended up discovering that a remote work environment actually comes with a host of benefits.
While office spaces are still collecting rent now, the next few years should prove very interesting for the office space market. Because of the success that businesses have had working remotely this year, many businesses are planning to decrease their office space size or even close their leases. Some experts even predict that nearly all office employees will require a network of locations by the year 2030. The thought here is that businesses can continue operating at a high level in a hybrid environment. This way, they can save thousands of dollars per year on rent, parking and utilities. As of now, a decrease in office leases is more or less a guarantee. As we continue to move forward, it will be important to observe market trends in order to decipher whether a full recovery will ever take place.
Partner with Willowbrook Valuation & Advisory Services for Assistance with Your Commercial Investments Amidst the COVID-19 Pandemic
At Willowbrook Valuation & Advisory Services, we are a leader in trusted insight, cutting-edge innovation and customer service. We offer exceptional litigation support to assist clients with insurance valuation, arbitration and consulting, property tax services, and expert testimony. To learn more about our valuation, counseling, or litigation services, please contact us at (202) 919-3888.