It has been more than 18 months since the lockdowns commenced, and yet many large office tenants are still not back in the office. What is more shocking is that they have not yet determined when or if they intend to do so.
For those who have begun the process of trying to safely return, one path is to coax those who feel comfortable doing so with a series of sensible policies from masks to safe social distancing. Some businesses start with simple steps like coming in one or two days a week, hoping the process will soon evolve to almost every day.
It is at this point, when the executives finally get around to polling their employees that they learn who will and will not come back. These findings have been quite a shock to some, as we learn just how independent some workers are in this tight job market, preferring to work from home FOREVER!!! It is also that case that some executives find the work from home has been working just fine, and they are quite happy with that arrangement.
The shakeout is occurring right now, as a whole host of forces descend on business owners like the unanticipated vaccine mandates.
We expect that in 2022 many businesses will discover that they no longer need or want to pay for office space. They may discover that their space needs have drastically changed and their office layout no longer works in a post Covid world where folks don’t feel safe working close to the one another, or that they have issues about wearing a mask for 8 or more hours a day.
Many of these tenants find that they are locked into a lease that they no longer want or that no longer functions in the manner they want. So, what do tenants do now?
There are a variety of options such as, assignment, subleasing, buyouts, and other disposition techniques. In our next issue, we will explore some of the methods to get out of a lease you no longer want, and we will elaborate on the benefits and the risks of each. In the meantime, if you find your needs have changed, feel free to give us a call to discover why at Dickstein Real Estate Services, OUR DIFFERENCE IS YOUR ADVANTAGE®.
Categorised in: Real Estate Markets