COVID has had some unexpected and positive lasting effects on how we go about daily lives. When it comes to commercial real estate, the obvious one is the new hybrid work model. This new model results in office occupiers often being able to operate the same business with less office space. This new trend means landlords are taking back more space than ever when leases expire. We are also seeing more tenants, who are tied to leases, listing their space for sub-lease. This results in some advantages to tenants who are shopping for new office space.

1. The vacancy rate is high which means landlords are often sharpening their pencils to attract tenants to their vacant spaces.
2. Tenants are comparing market rents being advertised by landlords with sub-lease opportunities which are often discounted or, at least, very negotiable.
3. Tenants have the opportunity to align their physical footprint to their current and future requirements.
4. If downsizing, tenants can save on their monthly overhead or upgrade the quality of their space for the same rent resulting in space that is nicer, smarter or both!

The first step in right-sizing your office is to determine how your current office space is working for you. Once you understand your needs you may realize you need to shrink your space, move or lock the doors and turn off the lights. “Lock the doors and turn off the lights” might seems like a drastic move but if you don’t need the space and can successfully sub-let it, you may be able to drastically cut your losses. If you are tied to a lease but your space is no longer working for you, sub-letting your space is an option. Some landlords, in order to attract you to their building, may even make it attractive for you to move mid-lease.

SUB-LEASE OPPOTUNITIES WE ARE CURRENTLY ADVERTISING CAN BE VIEWED HERE, HERE , HERE and HERE

All this to say… If you have too much space or are in the wrong space, call us to discuss your options.