Dec 24, 2020 - 0 Comments - Office Property -

Video: Office Strategies for 2021 as the Pandemic Subsides

In this video, Atlanta based broker Michael Bull discusses considerations for office space applicable to Miami, or for that matter any city in the world. Both tenants and landlords are wondering how office tenancy will settle out once COVID-19 is behind us. Utilization is currently way short of what it was without a pandemic. Once this (pandemic) is behind us, however, this will surely snap back, but not completely so, at last not immediately or any time soon.

This leads to the first sub-question: how much will office utilization come back toward “normal” pre-COVID levels? At the same time, office space square footage per worker is likely to increase in the interest of a safer work environment. Prior to the pandemic, there was already increasing discussion about whether open office environments were truly better. Health concerns are now more top of mind than before, and likely will remain so even after all this ends (this time). Thus the second sub-question is how much will average space per worker increase (if at all)? These two questions, combined with economic trends and other normal considerations, will drive what becomes of office vacancy and pricing.

The host makes a couple of good points about office lease negotiations today. First, now is the time for a prospective tenant to strike a deal, particularly given that there appears to be “light at the end of the tunnel,” nearing herd immunity by way of vaccinations as early as – cross your fingers – mid 2021. For landlords, he makes a good point that this may be a time for them to consider shorter leases than they might otherwise as tenants are for the moment less eager to have a long-term obligation.

2021, as far as office tenancy is concerned, is going to be about increasing office productivity (I know, when isn’t it?), making work environments safer, and adapting to employee needs. It should be interesting.