COVID-19 has had a dramatic impact on the way people use and engage with built environments. In the office sector, many believe there will be a reduction in a company’s CRE footprint as more organizations allow for permanent work from home policies.
Yet, this does not mean deals aren’t happening. In fact, JLL reported that there have been some sizable transactions over the past few months. The key difference now vs before the pandemic is that flexibility has become a top priority for organizations of all sizes.
Large, mid-size, and small businesses are reportedly searching for flexible space. As a result, landlords have responded by being more willing to offer rent-free periods and more flexible terms.
While no one knows how long the uncertainty and impact created by COVID-19 will last, one thing is for sure: flexibility will be key in the commercial real estate market as companies begin to navigate the new normal.
