Has the Nature of Work Changed Forever?
By: Lawrence Dickstein

The headline in GlobeStreet.com this week is “74 percent of companies plan to permanently shift up to 20 percent of their workforce to remote positions”. If that headline doesn’t grab you, the article goes on to state “we find that 13 percent of companies have already made cost reductions in real estate expenses with another 9 percent planning to take actions in the coming months”.

The effects of the Sequester are not equal. We are actively working to negotiate rent holidays for clients, many of whom are in real trouble right now. There are businesses unable to function without direct customer interactions that have seen their revenues unexpectedly shut off like the turn of a spigot. Retail businesses and restaurants are the obvious examples that are forced to close their doors and layoff their entire staffs. But there are also countless others in the Service Industry that have lost untold business opportunities.

There are those businesses that are fortunate that they are, to some extent, able to work remotely. Working from home is not new, but we are all finding that what is new is the way our technology has enabled us to do it so seamlessly. Bob Michie of Metro MSP is one of the armies of IT professionals that are helping companies to quickly convert their IT capabilities to those that use secure cloud-based platforms to enable us to work from home seamlessly and safely. Bob notes the dangers in using home computers stuffed with all kinds of security risks and recommends using  a computer with dedicated platforms with adequate safety protocols.

The future of office space is always just one lease away. We are already working with many companies that are rethinking their office platform from the top down. Those tenants that are actively negotiating lease renewals or will be looking at the necessity of doing so in the coming months, are looking askance at the thought of making any kind of long-term commitment in the face of such uncertainty.

To those who think things have never been so bad, I say they just haven’t lived long enough. We have survived the recessions of the 1970’s and 1980’s, with 40-50 percent vacancy factors here in New Jersey and with the majority of Landlords in foreclosure only to come out the other side much stronger.

Today’s Landlords are a much better and stronger breed. REITS are backed by the power of Wall Street, and Pension Funds and other large Portfolio Investors are far stronger than the Mom and Pop “no-money-down” Landlords of the past.

Now is the time to work together to focus on ways to bring back our economy. We may have a very rough period ahead, but I believe that adversity makes us stronger. We fear change more than we fear the Virus. Things may never be the same, but we will all find ways to succeed by working together. We are actively working with our clients to forge a way forward. If you would like to discuss your situation, please contact us for a confidential call or Zoom meeting and find out why, at Dickstein Real Estate Services “OUR DIFFERENCE IS YOUR ADVANTAGE®”.

To all our customers, friends and their families, stay safe!

Regards,
Lawrence Dickstein