November 26, 2022


Professional Real Estate Experts

BOMA Releases New COVID-19 Tenant Impact Survey

The Building Homeowners and Administrators Association (BOMA), along with investment and assets management computer software firm Yardi and investigate advisory services service provider Brightline Methods, lately produced a 3-element, nationwide research pertaining to the outcome of the pandemic on tenants’ solution to their business house needs heading forward.

The highlights offered in the remaining analyze relied on a collection of fielded responses from more than 1,267 business office conclusion-makers, which includes firm house owners, CEOs and other members of the C-Suite. The intention of the survey was to superior understand the upcoming fiscal and operational implications for professional genuine estate owners and operators.

Nowadays, tenants are grappling with a altering business surroundings, as very well as the want to increase staff fulfillment, which is swiftly getting a important section of talent retention and administration. As these kinds of, a reinvention of the office environment to accommodate evolving desires is on the horizon. Simply place, shifting times require a adaptable technique towards the business office house of tomorrow.

Hybrid Work, Office Dimension & Occupancy Changes

Just far more than 50 percent of those people surveyed signaled that they ended up most likely to lower the dimensions of their workspace, although some 36% have been either arranging to improve or maintain their office environment footprint. Amid those hunting to downsize, 67% pointed to the raising acceptance of distant or hybrid do the job as a significant contributing element.

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Notably, there ended up also some fascinating regional variants in the perception of distant do the job. For occasion, guidance for telework has increased appreciably all over the Northeast and in California, whereas numbers have absent down in the Southwest. The survey also uncovered that lesser corporations tended to be a lot less supportive of distant operate than much larger kinds.

Also, the large price of business office spaces — coupled with the raising expenditures of performing business enterprise — were also sizeable hurdles that a lot of tenants noted struggling with when taking into consideration their office wants. As a final result, tenants who have been shelling out bigger rents for each square foot expressed their help for telework.

Regardless of any sq. footage changes, the rate of lease renewals throughout the summertime of 2022 virtually matched pre-pandemic ranges. In point, a distinct majority (72%) of respondents mentioned they would be renewing their leases in the long term, with the caveat that 54% would like a shortening of their agreements from seven to 10 a long time down to a few to 5 years.

Reimagining the Business office

In the meantime, the most popular changes mentioned by respondents were people that sought to adapt the workplace to hybrid operate designs. These involved factors these types of as the business of professional progress functions commuting incentives, this sort of as stipends and parking reimbursements as very well as amplified numbers of social events.

Many respondents ended up also intrigued in protecting superior benchmarks in terms of sanitation and office security. To that close, 76% of respondents claimed they supported hand sanitizer availability and ongoing disinfection of typical spaces. Touchless elevators and air filtration techniques also collected substantial assist.

Two and a 50 percent decades immediately after the first COVID-19 lockdowns, the business office market is ultimately receiving more clarity regarding its long run route: Clearly, heading ahead, rightsizing and catering to employees’ requirements for flexibility will be just as essential as developing safer, extra inviting workspaces.

For far more insights, read through the whole report in this article.

Last modified: October 17, 2022

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