With the rise of the COVID-19 pandemic, many people had to change from offices to work from home. In addition, with the movement restrictions and total lockdown in many countries, companies are adapting to remote working faster than ever before. With the current trends in many industries, it is unlikely that people will go back to typical offices any time soon. Generally, businesses can feel a significant impact of remote work, and the real estate industry is no exception.
Explore the impact of remote on commercial real estate in this article.
A Shifting Paradigm
The corporate world valued the traditional office before the pandemic, but things appeared different with the introduction of remote work. Startups and large companies now realize that the remote working trend is feasible and cost-friendly. The realization led to a decrease in demand for traditional office space. Nonetheless, this impact is not uniform across all industries. Check the visible evolution in commercial real estate.
- Advertisement -
- Redevelopment and Repurposing
Commercial real estate developers are now repurposing traditional office spaces into residential units, mixed-purpose properties, or alternative commercial uses. With this trend, investors can still make maximum profits from existing assets.
- Adaptation and Flexibility
The rise and popularity of remote work is the mother of many flexible office space providers. These providers present organizations with the opportunities to scale up or down as necessary. As a result, many companies now evade long-term leasing commitments.
- Tech-enabled Office Spaces
Smart landlords are thinking forward and investing in technology to create safer, smarter, and more attractive working spaces. Tech features like improved air filtration, touchless entry systems, or advanced video conferencing capabilities to attract more remote working occupants.
- Urban and Suburban Preferences
Some companies in major urban centers are relinquishing or downsizing office spaces, seeking flexible work environments. Additionally, suburban commercial real estate markets are experiencing increased demand, with many employees seeking spacious yet convenient remote working spaces. Furthermore, some employers now prefer houses for sale in a gated community with shared amenities for employees to collaborate and achieve goals effectively.
Future Possibilities in Commercial Real Estate
Even with the significant impact of remote work on commercial real estate, it is crucial to remember that the industry is not obsolete. Some organizations cannot function without physical offices, yet they cannot avoid the remote working trend. Therefore, the future office will likely take a turn for the best.
- A Rise in Hybrid Work Models
A hybrid work model combining in-office and remote work is now famous for many companies. Businesses are rethinking their needs and focusing on a more collaborative and flexible environment to accommodate this shift.
- Amenities and Wellness
The pandemic accelerated wellness and health considerations, becoming central to office designs. Commercial real estate developers now focus on establishing properties with the employees’ well-being in mind. For example, it is common to find properties with outdoor fitness facilities and hang-out areas.
- Tech Integration in Office Spaces
Whether remote or in-office, technology remains crucial to every office setup. While it enhances the on-site workplace experience, it enables remote workers to perform seamlessly.
In addition, forward-thinking organization heads invest in technological software to promote a smooth collaboration between the on-site workers and those working remotely. As a result, it is easier for workers to cooperate in a project as they all work towards achieving similar goals.
Commercial real estate has experienced a transformative impact from remote work, prompting it to adapt faster and innovate. As much as the traditional office faces challenges with the rise of remote work, it is not about to go obsolete. The best thing is that real estate is a resilient and dynamic industry. It is ever ready to embrace changes and new opportunities.
