In terms of defining holistic workspaces, solutions are just now coming to the surface as we realize that the social distancing model is going to last for a while.
Certain costs continue to be embedded into any model, including salaries, benefits and even rents. But how to bring the people with the product to the customer is going to take on different forms moving forward well beyond 2021.
Commercial real estate agents are going to become experts in flex office space, the landlords that are willing to take on this new type of lessee and how to attract the right renters.
One of the ways businesses are dipping their toe back into the market is through renting flex office space, which is now becoming more available.
Even though the flex office space industry is just beginning, the demand for space is going to be a reality and so those businesses that are able to reuse properties free unique purposes are going to be able to take advantage of the demand and take advantage of the present available budgets.
Flex office space usually involves taking over space from another struggling operator or even competitor. Some businesses are looking to renegotiate the terms of their leases but others are simply walking away from those arrangements because they no longer represent a value proposition for the organization moving forward.
This is also going to require landlords to make some adjustments and accept terms that are somewhat less lucrative in the best cases and in the worst cases simply breaking even.
What is going to happen within the real estate market, especially within the commercial market, is somewhat of a re-evaluation of what properties are able to get with respect to rents. In some cases the flex office spaces in the adjacent region surrounding New York City are going to enjoy an advantage over those spaces within the city proper.
Landlords would most likely be best served by serving the needs of customers that have a current customer pipeline flowing and also some liquidity. This may point to tech firms who are able to come into spaces very quickly without a great deal of renovation.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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