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Emerging Commercial Real Estate Trends For 2021

Aayat AlibyAayat Ali
December 3, 2020
in News
Reading Time: 1 min read
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The industry that may have been hit the hardest by the ongoing pandemic is arguably commercial real estate. However, as the promise of a vaccine becomes more realistic, 2021 will see new trends emerge.

One of those trends will be the slow comeback of coworking spaces. Even prior to the pandemic, the industry was faced with challenges due to WeWork’s failed IPO attempt, as well as an overall slowdown of growth.

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However, a study from Colliers International predicts that the number of flexible offices could double or triple over the next five years as employees continue to demand to work from anywhere.

Along with this increase in flexible offices is the desire for short-term leases. Office tenants are now seeking leases that are shorter than traditional 10- to 15-year leases. 

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Additionally, sublease space is expected to continue increasing. Office vacancies have spiked over the last several months as companies shift to remote working for the time being. Now, organizations are reevaluating the amount of space they will need in the future, adding extra pressure on office rents.

Among the many losses that have hindered the commercial real estate industry over the past year, there is one winner: warehouses. As e-commerce continues to explode, companies such as Amazon and others need more delivery points to continue operating at their current frequency.

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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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