Remote workers have become the new normal in the past few years as a result of the coronavirus pandemic. Today’s economy still has a far higher percentage of remote workers compared to years prior, with the percentage of remote workers more than tripling since 2019. While many companies have announced their intent to remain remote, some companies are starting the shift back to in-person work – resulting in a higher demand of commercial real estate.
A few large companies such as Apple and Goldman Sachs have announced their intent to return to in-person work weeks, and many more are expected to follow. Just as larger companies are beginning to open offices again, so are smaller businesses. There are multiple factors that are playing a part in the rising demand of commercial real estate, and surprising to many, one of the main reasons is simply for socialization.
Will Remote Work be the New Normal?
While many businesses are planning on rolling out hybrid schedules, allowing employees to work from home part-time and in the office part-time, maintaining a partially remote work schedule. More than 50% of employees who are returning to the workplace have said that they are most looking forward to the socialization between co-workers. It seems that many people will remain fully remote, however within the coming years hybrid schedules may take over, dropping the percentage of fully remote workers closer to 8% by the end of 2024, a near 10% decrease from 2021. Even with hybrid schedules, the need for office space will be imminent.
Quarter 3 in 2021 seemed to have the lowest asking rents for commercial real estate in years due to availability being at an all-time high, however, we are starting to see asking rents climb for commercial spaces as the demand begins to grow. With rising rents, and commercial spaces renting faster than the past 4 quarters, now is the ideal time to find a space that could suit your business needs.
On the flip side, while the demand for commercial real estate is indeed on the rise, many believe there won’t be a supply issue as we saw over the past 2 years with residential real estate. Many commercial leases are currently expiring or expiring soon, and for some businesses who chose to keep their office spaces open during the pandemic, they may find themselves either calling it quits, moving to remote-work schedules, or finding the need to downsize, thus opening potential commercial spaces to new tenants.
With high availability, and demand on the rise, now is the time to secure your commercial space. Whether for a new business, an expansion, a smaller space for an existing business, or to return to in-person working, don’t wait to secure your office space.
Ready to explore what commercial spaces may be right for you in White Plains, NY? We are here to help! Feel free to contact our office today to begin your search.
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