Cost-cutting and flexibility are two of the biggest trends that are bound to shape the commercial property industry in 2021.
According to a survey from Global Views, flexible offices and leases will play a major role in how businesses operate in the future.
“This will allow companies to act more nimbly and adjust quickly to maximise benefits and cut down on costs,” said John Jack, CEO of Galetti Corporate Real Estate. “As a result of the current climate, lease provisions and conditions are changing. We are seeing a rise in short-term leases presenting greater risk for landlords, which may be adjusted with higher rentals for shorter terms.”
While some companies will attempt to return to pre-pandemic normalcy, many will continue to offer flexible and remote working arrangements.
Organizations that do so will likely turn to coworking and flexible offices to combat issues that can occur when working remotely, such as loneliness, distractions at home, limited home office resources, all while offering more collaborative opportunities.
Doing so still helps companies cut down on overall costs as these workspaces operate on short-term, flexible leases, as opposed to lengthy traditional leases.
Still, the Global Views survey found that 41% of respondents believe long-term leases will remain normal.
This is largely due to the fact that short-term leases are riskier for landlords and investors who seek income security.