As we enter the 3rd quarter of the year, a lot of businesses are asking what is going on with commercial real estate. Due to the pandemic in 2020, a lot businesses left their commercial leases and let properties become available. Whether this was done intentionally (due to working from home) or because the pandemic forced their hand to leave the building, it’s left a lot of properties available for rent.
Renting Vs. Buying Commercial Real Estate
While some people (investors, real estate agents, developers) might think now is the time to buy commercial real estate, it’s important to assess the long-term value of such property. Unless you can fill a property with tenants or be certain you’ll have businesses in the property for at least the next 5 years, it’s not a wise decision to invest in commercial property right now.
However, as a business owner, it is the right time to consider leasing. If your business is getting back to work and seeing customers in person, you need a place to conduct business. And thankfully, due to all of the vacancies popping up around the country, now is the time to start a lease. With proper negotiation from a commercial real estate agent, you could get your business into a great business deal.
The Work from Home Balance
Many employers instructed their workforce to stay home during 2020. This allowed for greater flexibility in work schedules and for offices to be emptied out. Now, a lot of businesses face the question – “should our office continue to be work-from-home?”
3 Benefits to Working from Home
- Happy Employees
- Availability Increases
- Less Distraction
Studies have shown employees are happier when working from home. In turn, this makes them more productive.
With a flexible schedule comes greater availability. Let’s say an employee is not available for something at 10 AM, but they can make up the time at 8 PM later that day. It works better for their schedule and in most cases, for yours.
Surprisingly, working from home has meant less distractions due to less meetings. While employees still might be distracted by various things, there are less trips to the break room, less meetings, less bathroom breaks, etc.
With these kind of benefits in place, one might wonder if it makes sense to rent out an office space right now. While this opinion will change from business to business, it’s important to be patient. Maybe allow employees to continue to work from home in the short-term and consider returning to an office space when the time is right. If your business is customer-facing and you need that interaction time with your customers, returning to a commercial property is more of a necessity.
Whatever you choose to do, be sure to negotiate for the best lease terms and the best monthly rate.