More and more businesses have put a plan together or have already begun the transition of getting their employees back to the office. The focus is now turning in a new direction and different questions are rising to the top of the priority list. Employers are trying to determine the amount of office space needed for their unique organization, and how the office will be used once the employees come back. Many companies are throwing out the traditional one fits most office format of the past and replacing it with a hybrid work model. Why the shift? Employers are very much aware of the fact that fewer employees will be coming in to the office every day, if they will even remain in the office for the entire work day, and how the employees will spend their time while they are physically in the office. All these unknown factors have employers wrestling with the decision to sign new long-term leases.
The effects of this unique strategy of doing business in trickling down to the commercial real estate market in a big way. According to JLL, subleases in the office market across the country are up 50 percent to almost 50 million square feet. Larger more competitive markets found in the big cities like Midtown Manhattan, are taking an even harder hit where subleases are reported up to 80 percent and a large number of office lease spaces sit empty. One of the most valuable services commercial real estate firms can provide for their clients in the current market is to provide them with the necessary information and walk them through the process of determining the right amount and type of space for their specific workforce needs.
Read the full article on “Answering the Billion-Dollar Question: Why Do I Need an Office?” here: