Despite major changes to work life since the onset of the pandemic, most companies still need office space.
What do business owners need to know before scouting out a new office lease? For starters, you probably don't need as much space as you once did. Maybe it will now be configured around meeting and gathering spaces instead of individual desks.
Even though the world has changed, landlords are not cutting lease rates. But you may be able to get concessions, such as several months of free rent. If you're unsure of what move to make, you can cut very short-term renewal deals with your landlord to stay put.
"If you're going to start cold today and look for office space, the first question you should really think hard about is what do you want to physically happen in the space," said Jim Vos, a principal with the Minneapolis office of Cresa, a Washington D.C.-based tenant representation firm.
He suggested considering how the space will contribute to the business plan. "Is it meetings? Is it work? Do you need customers to come in?" he said. "Is it a branding tool? Is it a recruiting tool? Is it a sales tool? Is it a collaboration tool?"
The office market remains something of a moving target amid ongoing waves of COVID, new hybrid work models and companies rethinking what they need from office space.
Vos noted that a client that occupies 32,000 square feet is looking to cut more than 50% of that space.
"They're going to retain their meeting space, retain their break space and just eliminate a bunch of cubes," he said. "What we expect of our office space is so different right now."