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The number of remote office workers is on the rise, and with it, the demand for flexible workspaces. Unfortunately, this disruption in the labor force is spelling bad news for commercial real estate brokers. As their clients grapple with the strange new economic landscape, CRE brokers are also forced to reckon with the impact.
The truth is that commercial real estate clients just aren’t leasing the way they used to. The fallout of the COVID-19 pandemic has plunged employers and employees everywhere into financial insecurity. That means clients who used to rent on multi-year cycles are instead migrating towards short-term lease options.
Adapting to The New Normal
No one knows what the future will bring a year from now, let alone five or even ten years down the line. All told, this is making things somewhat more difficult for CRE brokers to manage their business. So what’s a commercial broker to do?
Well, like everyone else, CRE brokers have to move with the times and adapt to new circumstances. Everyone else is using flexible and shared workspaces, so why can’t CRE brokers join the crowd?
It turns out that investing in a flex space as a CRE broker can be surprisingly beneficial for everyone involved. Read on to find out how.
New Alliances
CRE brokers can make powerful allies out of flex space owners and operators. Far from being a disadvantage, this shifting landscape has the potential to become a crucial opportunity—and it’s one that many brokers are rushing to embrace. Traditional lease structures may well be the way of the past; it’s entirely possible that the future lies in what CBRE calls “agile real estate solutions.”
CBRE goes on to say that 86% of respondents to their 2020 Global Occupier Survey agreed that flexible office space would play a role in their future real estate strategies. Here’s why:
- Nearly half wanted to offer a web of accessible office locations to cater to today’s mobile/remote workforce.
- 44% stated that they anticipated that flex spaces would help them enter new markets.
- Approximately 40% of respondents said agile real estate solutions would enable them to test new workspace options.
Participants in the survey communicated that, in their eyes, flexible workspaces are the way of the future. Even after COVID restrictions end and traditional offices open back up, it’s highly likely that we’ll see that trend continue.
What’s The New Normal of Work?
The pandemic has fundamentally shifted the way we work. Now that employers and employees alike know that remote work is a feasible alternative to the nine-to-five cubicle workday, there’s simply no going back. As a result, in all likelihood, we’ll start to see a more evenly blended mix of in-office and remote workers, perhaps on a rotating schedule.
Forward-thinking CRE brokers are fast recognizing that flex spaces are a worthy investment. With the market changes we’ve seen over the past year, there are more opportunities than ever for brokers who are ready to think outside the box.
