A new report has revealed that up to 40% of commercial space occupiers will lease new office space over the next six to eight months. The survey revealed that 12% plan to integrate a “flex and core” portfolio to help overcome obstacles placed by the current pandemic.
According to Colliers Research, this move in addition to expansion plans will make for decent leasing activity by 2021.
The survey also found that many occupiers are looking into decreasing density by up to 20%, with intentions to expand their footprint over the next six to eight months.
“Occupiers are exploring new business models which is forcing landlords and occupiers to adapt to new demands,” said Sanjay Chatrath, Managing Director at Colliers International North India. “Therefore, collaboration and transparency between landlords and occupiers will be key. The real estate strategy now looked upon by some occupiers is around building ‘flex and core’ portfolio that includes a flexible office space for medium and long-term lease for core operations. The tech sector has been adopting ‘flex and core’ models quite successfully.”
Additionally, nearly half of occupiers indicated that only 30% of their employees will actually return to the office over the next two to three months, with 38% saying they will continue to embrace remote working arrangements for at least six to eight months.