Posted on

Navigating Success in the Commercial Real Estate Market with Brokers

Leasing office space is a significant milestone for any business. It’s not just about finding a location; it’s about securing a space that aligns with your company’s culture, meets your operational needs, and fits your budget. For property owners and landlords, finding the right tenants is crucial to maximizing the value of their investments. This is where brokers come into play, acting as intermediaries who bring expertise, market knowledge, and negotiation skills to the table.

Brokers bridge the gap between tenants and landlords, ensuring that both parties find mutually beneficial agreements. For tenants, brokers simplify the search process, offer valuable insights, and negotiate lease terms that protect their interests. For landlords and property owners, brokers market the property, identify potential tenants, and negotiate deals that optimize returns. Understanding the role of brokers and leveraging their expertise can make the leasing process smoother and more efficient for everyone involved.

To help tenants and landlords succeed in their leasing endeavors, we’ve put together a guide on how to navigate broker relationships effectively. We’ll cover who needs brokers, the types of brokers and their roles, how to get the most out of your broker relationship, and valuable resources to assist you in finding the right broker.

Who Needs Brokers When Leasing Office Space?

When leasing office space, navigating the complexities of the commercial real estate market can be daunting. Whether you’re a tenant looking for the perfect office or an owner seeking the right tenants, a broker can be an invaluable ally. But who exactly needs a broker, and what benefits do they bring?

Types of Brokers: Listing Brokers vs. Tenant Representatives

Understanding the different types of brokers is crucial. Here, we break down the two main types:

  1. Listing Brokers/Agents
    • Who They Serve: Listing brokers, also known as landlord brokers, represent property owners. Their primary goal is to lease available office spaces on behalf of the owners.
    • Key Responsibilities: These brokers market the property, negotiate lease terms, and aim to secure the best deal for the owner. They have an in-depth understanding of the property, its advantages, and the competitive landscape.
  2. Tenant Representatives (Tenant Rep)
    • Who They Serve: Tenant reps work exclusively for tenants, helping them find office spaces that meet their specific needs.
    • Key Responsibilities: Tenant reps assist with space searches, negotiate lease terms, and ensure that the tenant’s interests are protected. They bring market expertise, helping tenants make informed decisions.

How to Get the Most Out of Your Broker Relationship

Maximizing the benefits of your broker relationship involves a few key strategies:

  1. Clear Communication: Clearly articulate your needs, preferences, and budget constraints. Whether you’re an owner or tenant, the more information you provide, the better your broker can serve you.
  2. Leverage Expertise: Brokers bring valuable market insights and negotiation skills. Utilize their advice and leverage their knowledge to navigate the leasing process efficiently.
  3. Regular Updates: Stay in regular contact with your broker to receive timely updates on potential opportunities or market changes.
  4. Set Realistic Expectations: Understand the market dynamics and set realistic goals. A good broker will help you balance your needs with market realities.

Resources

Finding the right broker is the first step toward a successful leasing experience. Here are some resources to help you get started:

  1. Top Commercial Real Estate Brokerages: This comprehensive list from SharpLaunch details some of the top commercial real estate brokerages in the U.S., providing a great starting point for finding a broker that fits your needs. Check it out here.
  2. OfficeSpace.com: Tenants can search for free and connect with both tenant reps and listing brokers with no commitments. For brokers, listing on OfficeSpace.com is free, providing a great opportunity to grow exposure for their clients.

At OfficeSpace.com, we are committed to facilitating seamless connections between tenants and brokers, ensuring that both parties find the perfect match. Whether you’re looking to lease a new office or list your property, our platform offers the tools and resources you need to succeed in the commercial real estate market.

Posted on

Managed Office or Coworking? What’s Right for Your Business?

Choosing the right office space for your business is crucial. The right environment can boost productivity, foster creativity, and improve overall job satisfaction. In today’s commercial real estate market, two popular options are managed office spaces and coworking spaces. Two modern alternatives to traditional offices spaces and office leases.

Managed Office Spaces vs. Coworking Spaces

Managed Office Spaces

Managed office solutions, like those offered by The Instant Group, provide a comprehensive, all-inclusive approach to securing and setting up office spaces making it easier for businesses and teams to get to work faster in perfectly curated workspaces.

Managed office providers handle everything from finding a suitable location, outfitting the space to meet client needs, and managing all aspects of the office delivery. This approach is ideal for businesses looking for a tailored workspace without the hassle of dealing with logistics and setup.

Coworking Spaces

Coworking spaces are shared environments where individuals from different companies work side by side. These spaces often offer flexible membership plans, allowing businesses to scale up or down as needed. Coworking is known for fostering collaboration and networking among diverse professionals. It’s perfect for startups, freelancers, and remote teams looking for a vibrant and flexible work environment.

How to Evaluate: Managed vs. Coworking

When deciding between managed office spaces and coworking, consider the following factors:

1. Size and Nature of Your Team

   Managed: Ideal for medium to large teams requiring dedicated, branded spaces.

   Coworking: Best for small teams, startups, or individual freelancers.

2. Level of Customization Needed

Managed: High customization potential. Offices, team spaces, meeting rooms, kitchen and dining areas, and more are designed and outfitted to meet your specific needs.

Coworking: Limited customization. Spaces are shared and more standardized.

3. Budget Considerations

Managed: Often requires a larger investment but offers all-inclusive services to deliver customized spaces.

Coworking: Generally more cost-effective with flexible pricing plans and the ability to scale up or down.

4. Duration of Stay 

Managed: Suitable for businesses that are ready to embrace larger leases and longer commitments.

Coworking: Great for short-term needs or month-to-month flexibility.

5. Community and Networking 

Managed: Less focus on external community, more focused internal collaboration within a dedicated space.

Coworking: Strong emphasis on community, collaboration, and networking opportunities.

Benefits of modern office solutions.

Both coworking spaces and managed office solutions offer distinct benefits compared to the office spaces of the past.

Benefits of Managed Office Spaces:

One of the primary advantages of managed office spaces is the tailored solutions they offer. Managed spaces are designed to reflect your brand and cater specifically to your business needs. This level of customization ensures that the office environment aligns perfectly with your company’s identity and operational requirements. Moreover, the hassle-free experience provided by managed office solutions is invaluable. Providers like The Instant Group take care of everything from locating the perfect space to outfitting it with the necessary furnishings and technology, allowing you to focus solely on running your business.

Having a dedicated space is another significant benefit of managed offices. Unlike coworking spaces, managed offices provide privacy and focus, which can be crucial for teams that handle sensitive information or require a quiet environment to be productive. Additionally, managed spaces offer scalability options. As your business grows, the office space can be expanded or modified to accommodate the changing needs, providing a seamless transition without the disruption of moving to a new location.

Benefits of Coworking Spaces:

Coworking spaces, on the other hand, are renowned for their flexibility. These spaces offer various membership plans that allow businesses to scale their usage up or down depending on their current needs. This flexibility is particularly beneficial for startups, freelancers, and remote teams that may not have a stable size or fixed office requirements. Coworking spaces are also more cost-effective compared to managed offices. Businesses only pay for what they use, making it an economical choice for those who need professional space without the high overhead costs associated with traditional offices.

Networking opportunities are another key benefit of coworking spaces. These environments are designed to foster interaction and collaboration among diverse professionals, providing ample chances to connect, share ideas, and even form partnerships. The vibrant atmosphere of a coworking space can also be a significant advantage. The dynamic and energetic vibe often found in these environments can boost creativity and motivation, making them an excellent choice for teams that thrive in a lively and collaborative setting.

Making the Decision

To determine which option is best for your business, evaluate your team’s specific needs, budget, and work style. If you need a highly customized, private space with comprehensive management, a managed office space might be the perfect fit. On the other hand, if flexibility, cost-effectiveness, and networking opportunities are your top priorities, a coworking space could be the ideal choice.

Choosing the right workspace can significantly impact your business’s success. Consider your unique requirements and explore both managed and coworking options to find the perfect fit for your team.

—

OfficeSpace.com is a part of The Instant Group – Together, we’re rethinking workspace. Get started and search thousands of office listings across every U.S. market for free.  Find your perfect space today on OfficeSpace.com.  

Connect with The Instant Group for more information on managed office solutions or explore various coworking spaces to find the perfect environment for your business.

Posted on

Three Tips to Lease Your Spec Suites Faster: A Landlord’s Guide.

Modern office room

In today’s competitive commercial real estate market, landlords seeking to maximize the leasing potential of their properties are turning to spec suites as a strategic solution. Spec suites offer move-in ready spaces designed to meet the diverse needs of modern businesses. To effectively attract prospective tenants to these spaces, landlords must employ targeted strategies that resonate with the evolving demands of the market.

In today’s CRE market, providing flexible, ready-to-occupy spaces can be a game-changer. Click to read: What are spec suites? And how they’re shaking up today’s office market.

By following these proven strategies, landlords can enhance the appeal of their spec suites, expedite the leasing process, and ultimately optimize their property portfolios for maximum profitability.

1.  Understand Market Demand: 

Before creating a spec suite offering, it’s critical to understand market dynamics and identify demand levels for workspace products, from flex space and spec suites to traditional. Research the local market and consider factors such as location, size, amenities, and target tenant demographics.

Analyze factors such as demand vs. supply of flex space, emerging trends, evolving tenant preferences, and economic headwinds influencing broader the demand for commercial spaces.

Evaluate the specific needs of potential tenants, considering aspects like location preferences, desired square footage, and essential amenities. By gathering data on existing vacancies, absorption rates, and comparable lease transactions, landlords can identify niche opportunities and tailor their spec suites to meet market demand effectively. Additionally, engaging with local businesses, industry associations, and economic development agencies can provide valuable insights into the demand drivers shaping the commercial real estate landscape.

2. Utilize Industry Marketplaces: 

In today’s digital age, leveraging online platforms and digital marketing strategies is essential for landlords to effectively showcase their spec suites and reach potential tenants. Partnering with sector specific listing platforms unlock a wider audience of prospects actively searching for commercial spaces and can enhance exposure of your offering significantly. By embracing an industry marketplace, landlords can enhance their online presence, generate leads, and facilitate faster leasing transactions for their spec suites.

When it comes to your listings, invest in professional photography and videography to capture the essence of the space, highlighting key features, finishes, and amenities. Create visually appealing listing materials with detailed descriptions, floor plans, and virtual tours to provide prospective tenants with a comprehensive understanding of the space’s layout and potential uses.

3. Network with Brokers: 

Building strong relationships with commercial real estate brokers is instrumental in effectively marketing and leasing spec suites. Brokers serve as valuable intermediaries, connecting landlords with qualified tenants and facilitating lease negotiations. Engage proactively with local brokerage firms and individual brokers specializing in commercial real estate, introducing them to your spec suites and providing them with relevant marketing materials.

Host broker open houses or networking events to showcase the space firsthand and foster relationships with potential tenant representatives. Offer competitive incentives, such as exclusive leasing rights or attractive commission structures, to incentivize brokers to prioritize your spec suites in their client recommendations. By cultivating a network of trusted brokers, landlords can tap into their extensive market knowledge, industry connections, and deal-making expertise to expedite the leasing process and maximize occupancy rates for their spec suites.

Leasing spec suites presents a lucrative opportunity for landlords to capitalize on market demand and optimize their property portfolios. By understanding the unique needs of tenants, investing in high-quality design and amenities, and leveraging spec suites as a competitive advantage, landlords can expedite the leasing process and maximize profitability in today’s dynamic real estate market.

 

Fill spaces faster and improve net operating income with OfficeSpace.com

Landlords can kickstart their leasing efforts for spec suites by taking advantage of the free listing services offered on OfficeSpace.com.

Showcase your move-in ready spaces to a vast audience of prospective tenants actively searching for commercial real estate in every market across the United States. Tenants can easily discover spec suites that meet their specific criteria, leading to faster leasing transactions. Leveraging OfficeSpace.com’s free listing service empowers landlords to enhance their online presence, attract qualified leads, and ultimately maximize occupancy rates for their spec suites.

Need help managing your spec suite? The Instant Group is here to help.

Now, more than ever before, business leaders are demanding a more agile approach to real estate. The Instant Group is the largest global marketplace for flexible workspace, providing landlords with tenants to fill space, data for flexible space investments, and flex products to improve margins. Learn more at theinstantgroup.com.

Posted on

What are spec suites? And how they’re shaking up today’s office market.

Modern office image

Commonly referred to as “spec suites,” speculative suites stand out as a strategic move for landlords aiming to entice tenants with move-in ready spaces. In today’s competitive commercial real estate market, providing flexible, ready-to-occupy spaces can be a game-changer, accelerating the leasing process and maximizing profitability.

What Are Spec Suites?

Spec suites, short for speculative suites, are pre-built office spaces designed with specific features and amenities to appeal to a wide range of potential tenants. These spaces are meticulously crafted to meet the needs of modern businesses, offering a turnkey solution for companies seeking immediate occupancy without the hassle of extensive build-out or customization. Often featuring contemporary designs, high-quality finishes, and essential infrastructure such as lighting, HVAC systems, and internet connectivity, spec suites present a compelling option for businesses looking to hit the ground running.

Commonly referred to as “pre-built suites,” “move-in ready spaces,” or “ready-to-occupy offices,” these suites eliminate the uncertainty, expense and time associated with traditional office build outs. Landlords invest in creating these spaces based on market demand and industry trends, aiming to attract a diverse array of tenants across different sectors.

Want to know where spec suites might be in demand? Click here.

Who Utilizes Spec Suites?

A wide range of tenants can benefit from leasing spec suites, making them a versatile option in the commercial real estate landscape. Startups and small to medium-sized enterprises (SMEs) often find spec suites particularly appealing due to their flexibility and convenience. These businesses may lack the resources or time to undertake extensive build-out projects and instead prefer a ready-made solution that aligns with their immediate needs.

Additionally, larger corporations seeking satellite offices or temporary spaces may opt for spec suites to streamline their expansion plans. With the growing trend of remote work and distributed teams, businesses require agile real estate solutions that can accommodate changing workforce dynamics. Spec suites offer scalability and agility, allowing tenants to adjust their space requirements with minimal disruption to their operations.

 

What Makes Spec Suites Profitable?

For landlords, investing in spec suites can yield significant returns and enhance the overall value of their properties. By anticipating market demand and proactively creating move-in ready spaces, landlords can differentiate their offerings and attract tenants more effectively. Here are some key factors that contribute to the profitability of spec suites:

  • Reduced Vacancy Periods: Spec suites enable landlords to minimize vacancy periods by providing ready-to-occupy spaces that appeal to tenants seeking immediate occupancy. By reducing the time between leases, landlords can optimize rental income and maintain consistent cash flow.
  • Competitive Advantage: Offering spec suites gives landlords a competitive edge in the market, allowing them to differentiate their properties and stand out among competitors. With well-designed and strategically located spec suites, landlords can attract a diverse tenant base and command premium rental rates.
  • Cost Efficiency: While initial investment in spec suites may require upfront capital expenditure, landlords can recoup these costs through higher rental rates and faster leasing cycles. By eliminating the need for extensive build-out or customization, spec suites offer cost-effective solutions for both landlords and tenants.

Spec suites represent a dynamic shift in the commercial real estate landscape, offering landlords a strategic advantage and tenants a convenient solution. With their flexibility, convenience, and cost efficiency, spec suites are reshaping the office market, setting a new standard for agility and responsiveness in meeting the evolving demands of businesses. As the trend continues to gain momentum, embracing spec suites presents a lucrative opportunity for landlords and a practical solution for tenants navigating today’s competitive real estate environment.

Need help managing your spec suite? The Instant Group is here to help.

Now, more than ever before, business leaders are demanding a more agile approach to real estate. The Instant Group is the largest global marketplace for flexible workspace, providing landlords with tenants to fill space, data for flexible space investments, and flex products to improve margins. Learn more at theinstantgroup.com.

Posted on

Finding solid ground amidst the challenges of dated technology and rapidly evolving commercial markets.

Change is often slow in the commercial real estate industry, especially when technology is concerned. The next year will be a pivotal time for real estate firms as they endeavor to reposition themselves in a landscape shaped by a myriad of challenges, necessitating a reevaluation of strategies and embracing innovative technologies. It’s becoming increasingly clear that the traditional status quo will no longer suffice in this rapidly evolving sector.

One significant hurdle many firms face is the accumulated burden of technical debt—a result of relying on outdated and inadequate technology and systems. The cost of this burden is steep, affecting both time and money and resulting in lost opportunities. According to a recent survey from Deloitte, a significant 61% of CRE (Commercial Real Estate) firms acknowledge that their core technology infrastructures still rely on legacy systems. However, nearly half of these firms are making strides to modernize their operations. This acknowledgment is the first step towards a much-needed transformation.

The pressing need for change represents a prime opportunity for CRE businesses to integrate new technologies. By scaling up their capabilities, these firms can better navigate the current economic challenges and emerge successfully from the broader fluctuations in CRE markets.

The pressing need for change represents a prime opportunity for CRE businesses to integrate new technologies. By scaling up their capabilities, these firms can better navigate the current economic challenges and emerge successfully from the broader fluctuations in CRE markets.

Embracing new technology is not a one-size-fits-all solution. Different aspects of the real estate business demand specific technological solutions. From marketing and sales to lease and asset management, property management, tenant engagement, investment management, finance and accounting, and even construction management, there exists a diverse array of technologies catered to streamline these functions. The success of a business hinges on its ability to identify and implement the solutions that best suit its specific needs, allowing for more efficient operations and enabling swift and effective capitalization on emerging opportunities.

The commercial real estate (CRE) industry is undergoing a major transformation, and technology is playing a leading role. To remain competitive in the coming years, CRE firms must embrace new technologies and modernize their operations.

The true cost of technical debt.

Many CRE firms rely on outdated and inadequate technology systems. This can lead to a number of problems, including:

  • Inefficiency: Legacy systems are often slow and cumbersome to use. This can waste time and resources for employees.
  • Lost opportunities: Outdated systems may not be able to support the latest trends and technologies in the CRE industry. This can put firms at a competitive disadvantage.
  • Security risks: Legacy systems are often more vulnerable to security breaches. This can put sensitive data at risk and damage a firm’s reputation.

Opportunities to incorporate new technology.

There are a number of new technologies that CRE firms can incorporate to improve their operations. Some examples include:

  • Artificial intelligence (AI): AI can be used to automate tasks, improve decision-making, and gain insights into market data.
  • Big data: Big data analytics can help firms identify trends, patterns, and opportunities that would be difficult to see with the naked eye.
  • Cloud computing: Cloud computing can provide firms with access to scalable and affordable IT resources.

Different technology solutions for different aspects of CRE.

Depending on what sector of commercial real estate your business serves, there are different needs that technology can address. From selling better and faster to smoother operations there is a place for technology in every CRE business.

Technology can be used to improve a variety of aspects of CRE operations, including:

  • Marketing and sales: Technology can help firms automate their marketing and sales processes, generate leads, and track their results.
  • Lease and asset management: Technology can help firms manage their leases and assets more efficiently and effectively.
  • Property management: Technology can help firms automate their property management tasks, improve tenant satisfaction, and reduce costs.
  • Tenant engagement: Technology can help firms improve their communication and engagement with tenants.
  • Investment management: Technology can help firms with investment research, portfolio management, and risk assessment.
  • Finance and accounting: Technology can help firms automate their financial and accounting processes, improve accuracy, and reduce costs.
  • Construction management: Technology can help firms manage construction projects more efficiently and effectively.

Solid ground in times of instability.

“Developments across the commercial real estate industry will likely be under the microscope for the remainder of 2023 and into 2024. How industry leaders choose to navigate the coming 12 to 18 months could be crucial in establishing a sturdy base of operations for the long term.”

No doubt, the future of CRE is uncertain. Today, we’re seeing the most successful firms reevaluating their technology needs and creating a solid foundation for the future by transforming their businesses to succeed amidst the rapidly changing CRE landscape.

Posted on

Undeniable expertise. How Trilogy CRE has achieved continuous growth alongside client success.

In this edition of the OfficeSpace.com blog, we turn the spotlight on a real estate professional who has found that commanding market share and growing his business go hand in hand. We’re excited to showcase a remarkable tenant rep broker who has harnessed the power of Lead Connect to supercharge their real estate business. Through his dedication to every lead, Matt has not only grown his business but also transformed the way businesses, large and small, find their perfect commercial space in Arizona.

Join us as we delve into Matt’s success and explore how he has built a powerful business uniquely poised to grow and expand, even amidst the challenges of today’s commercial real estate markets.

Meet Matt Bustamante

Meet Matt Bustamante – owner of Maricopa County, AZ-based Trilogy CRE. 

Matt has been serving Phoenix, AZ, and beyond for the last 20 years, building his business by focusing on delivering outstanding service to every client, every time. It goes without saying that after 20 years, he has a long list of repeat customers, and the referrals continue to roll in, but in the midst of the challenging economic times of the past few years, his business has continued to grow rather than falter. I connected with Matt to discuss how he has navigated these challenges and learn more about how he has built one of the most powerful tenant representation businesses in Arizona.

 

Matt is a long-time Lead Connect customer, receiving inbound tenant rep leads from OfficeSpace.com in Maricopa County that he and his team of specialized brokers help in their “search, selection, negotiation, and occupancy of retail, office, and industrial space in the Phoenix Metro area.”

“I’ve been with you guys for three years now…[before], I was dumping thousands of dollars a month into advertising, and I was getting some leads from it, but then, that’s when I discovered [OfficeSpace].” 

Matt continues, “So I figured I’m spending a couple thousand dollars a month, even on the low end in the beginning, on advertising. Or I can spend [my advertising dollars differently] over here and get a better result. And you guys already had the SEO down, and that’s where I was lacking. So, instead of me funneling leads to other people and then taking a cut from them, I was just pursuing them myself.”

To clarify Matt’s comments – a subscription to Lead Connect starts at only $199/mo and, in most cases, is much more cost-effective than traditional lead generation or targeted advertising services in commercial real estate. Even better, Lead Connect delivers leads in real-time helping successful brokers like Matt engage leads in their markets faster.

 

All successful CRE pros know that inbound leads are essential for growing business alongside referrals and return customers and that often owning these leads is the key to success. I asked Matt how OfficeSpace.com has played a part in growing his business and his lead pipeline.

“Honestly, it came down to the volume of leads. I wasn’t able to obtain [more leads] without spending even more money to obtain the same amount of leads that you guys could give me.” Matt explains further, “So I just took them all in-house and just revamped everything. I realized I can do it better myself, so I just decided to work 20 to 30 hours more than I was already working to make sure that everything was handled properly.” 

Matt hits home that his focus is bringing the same level of dedicated service to every client is the foundation of his success. Being the exclusive tenant rep broker in Maricopa County has allowed him to grow his team and establish Trilogy CRE as the undeniable expert in the area.

“I just came to a decision, once I was going to get the entire territory exclusively, I would bring everybody in-house.  This would allow me to work with and further educate my team on the importance of customer service and refine the more intricate aspects of tenant representation.”

 

We continue discussing the growth of Trilogy CRE and how Matt has leveraged OfficeSpace.com to support his fast-growing business. “At first, the business from OfficeSpace was about a third of my total business. Now, I’m getting referrals from those clients that closed from OfficeSpace. These additional referrals aren’t directly attributable to OfficeSpace, but extremely valuable to our success.” He adds, “I’m a numbers guy. I look at where everything’s coming from, and it’s important. How do you grow if you don’t know where you come from, right?”

Continuing to discuss Lead Connect and how Matt utilizes the inbound leads, he says, “There’s a lot of value to what you guys bring. So, I just figured instead of trying to reinvent the wheel, I’ll just run with what you guys have because that’s what I was trying to do.”

 

To wrap up our conversation, I asked Matt what he feels is the most significant opportunity of being in the tenant rep space.

Without skipping a beat, he dives in, “That’s easy for me. First of all, you can’t be good at everything. I started out almost 20 years ago, primarily representing small mom-and-pop businesses, which continue to remain important to my success. These businesses are crucial to our economy and local communities.  These relationships built the foundation on which Trilogy has grown into national tenant representation for companies both small and large.  To this day, I have never represented a landlord.” He adds that he refers this business to earn income from the referrals rather than trying to spread his focus outside his expertise. “[This] allows me to concentrate on doing what I love and what I do best, which is tenant rep. “

 

By serving clients large and small, Matt confidently closes more deals than there are weeks in a year, and that number is growing as he continues to scale Trilogy CRE. He closes by stating, “Lead Connect has doubled the volume of leads that I have coming in from my existing personal book of business.”

 

At OfficeSpace.com, we’re proud to deliver valuable leads to commercial real estate professionals. Tenant rep brokers like Matt Bustamante are a testament to the necessity of tenant representation for businesses large and small. Matt has used his experience, along with inbound leads from OfficeSpace.com, to expand his reach and ensure he delivers the best client experience to Maricopa County and beyond. 

 

You can learn more about Matt and Trilogy CRE by visiting their website here – www.TrilogyCRE.com. 

 

Want to learn more about Lead Connect?

Are you looking to grow your inbound lead pipeline and become a trusted expert in your market? Learn more about Lead Connect from OfficeSpace.com here, or reach out to our team to get started.

Posted on

Is the foundation of the office sector crumbling? The future of the office – and what’s to come of the office space.

Office present and office past

The economic uncertainty of the past two years has no doubt taken its toll on commercial real estate – particularly in the office sector. With many companies adopting remote work policies, office vacancy rates have risen in many cities, and landlords have faced a difficult market. In some cases, companies have renegotiated their lease terms or decided to sublease their excess office space. This has resulted in downward pressure on rental rates and overall property valuations.

While interest rates remain on the rise and many assets across all classes are headed towards distress, some markets show signs of improvement, while others are feeling the pressure. 

However, it’s not all bad news for office spaces as an asset class. While some companies have adopted remote work policies, many others have remained committed to the traditional office setting. Some businesses have even increased their demand for office spaces as a way to comply with social distancing requirements and to ensure their employees have a safe and productive workspace.

While uncertainty surrounds the future of the office as a workspace, the more important question is this: what is to come of the office building? 

 

What is to come of office spaces and buildings?

While office as an asset class has certainly been in the spotlight over the last year or two, it is time to start considering the new realities faced by these assets. We’ll cover this from two perspectives: the office as a workspace, the office building as a commercial asset.

 

The office – a common workplace…but is it timeless?

Most of us have, or are currently working from an office. A staple and widely accepted workplace setting leading up to the COVID-19 pandemic. Since 2020, we’ve seen a shift to remote and hybrid work leading to a dramatic decrease in office utilization and in some cases necessity. The question remains: will this shift to remote and/or hybrid be permanent?

The shift from a largely full-time in-office setting to hybrid and remote was fueled by concerns around social distancing amid the pandemic and happened quickly. As we’ve seen, the return to the office has been much slower, and in some cases hybrid and fully remote work may continue. However, while these settings may be successful for specific roles and organizations, the office itself has been cemented as a standard workplace over time. While the transition back to a predominantly office environment may take time, it is a very likely trend that has already begun to emerge. What remains to be seen is at what capacity will office work make its comeback – will the office be the norm once again, or is hybrid here to stay?

 

The office building

Surrounded by uncertainty in demand, the next question is what’s to come for the office building itself. Offices come in many different shapes, sizes, and values, and as anyone in commercial real estate knows, they’re present in every market. Along with massive variance in value, these assets carry varying levels and types of (often complex) debt and most importantly varying capability to produce positive returns.

With cheap debt no longer on the table and high amounts of vacancy, many assets are reaching debt maturity and lacking the profits necessary to effectively refinance at current rates. So, what are the options for owners facing tough times amidst challenging market conditions?

 

Weather the storm

While difficult – one option for underperforming assets is to wait out the current market conditions and hope for a change in office sentiment and interest rates. Assets that are able to stay afloat amid vacancies and tough financing are more likely to become profitable again in the future. In some cases, owners may be able to restructure their financing. This may require demonstrating a viable plan to improve the property’s performance and may involve additional fees or covenants. Further, owners may seek to bring in new equity partners to inject additional capital into the property and pay off the existing debt. This may require negotiating with the existing lender to subordinate the debt or convert it into equity.

 

Convert?

Another possibility is adapting the office building. Converting a standard office to apartments or retail, or a mix while possible is tremendously expensive and not always a viable option – dependent on the particular building based on a myriad of factors including: location, zoning, size, layout, etc.

Using some general assumptions – the average office building in the U.S. is around 20,000 sq./ft.. And the costs to renovate an office into an apartment and/or retail can be between $100-$300 sq./ft. It could cost upwards of $6,000,000 to update the average office building before it’s ever able to generate revenue aside from traditionally leased office space. Compare this to a rough estimate of that 20,000 sq./ft. Office asset’s approximate value of $5-6 million dollars and the cost of converting is extremely steep and carries a high level of risk if the newly renovated asset cannot perform and meet its debt obligations. 

It’s important to note that while the cost of converting an office building into apartments (or other types of commercial space) can be significant, the potential returns on investment can also be substantial, particularly in high-demand urban areas where there is a shortage of affordable housing. With careful planning and execution, converting an office building into apartments can be a viable and profitable investment strategy for real estate developers and investors.

 

The future of office

Despite the widespread adoption of remote work, it’s unlikely that the traditional office space will disappear altogether. In-person collaboration and face-to-face meetings are still essential for many businesses, and there will always be a need for physical office spaces. However, the office spaces of the future may look quite different from those of the past.

Owners and investors of office assets must be prepared to adapt or weather the storm of current economic challenges. Like all markets, commercial real estate has its ups and downs. Investors who are able to hold their assets amid these tough times have the potential to see profits return in the future as the economy recovers, and as more workers return to the office. Additionally, there will be opportunity for savvy investors large and small to capitalize on distressed office assets as some will ultimately fail. 

The only certainty in the CRE markets of 2023 is that uncertainty is likely to prevail. Investors must remain vigilant and ready to entertain and embrace new ideas and the new reality of the office sector.

Posted on

How to Create a Work Culture that Supports Employee Mental Health

Mental health has always been important, but the need for supportive and empathetic workplaces has increased with the pandemic and the transition to unconventional work environments. Poor mental health can directly affect productivity and job satisfaction, which can lead to burnout and turnover.

With a record 4.5 million Americans quitting their jobs during the Great Resignation, it’s clear that people are more than willing to find new companies that support their needs. To retain top talent, companies must take care of their employees.

 

Now is the perfect time to revamp your company’s work culture and make it more focused on the emotional well-being of your employees. Here are a few ways you can start.

 

Recognize Your Employees

Sometimes supporting your team’s mental health is as simple as recognizing them for their hard work. Recognition is one of the lead drivers of employee satisfaction, which can lead to higher productivity levels. In fact, in a recent survey, 80% of employees claimed they would work harder if they felt they were being adequately recognized for their efforts.

 

Employee recognition often gets overlooked in the workplace, and when neglected can have a significant impact on your work culture. Making sure employees feel appreciated and valued for their contributions to the company can increase their overall satisfaction and engagement.

 

This can be in the form of a shoutout, award, fun event, catered lunch, etc. Offering positive reinforcement and showing gratitude to your employees can boost their morale and create an environment that values mental health.

 

Provide Financial Education

Finances are often a major cause of stress, resulting in poor mental health. Employees of all ages face various financial challenges, which have only been amplified by the effects of the pandemic and current events. For most people, their single job is their only source of income, which makes financial literacy even more important.

 

Although not directly tied to work, financial stress can still disrupt your team’s focus and productivity. It’s important to give employees proper education and resources to manage these hardships to foster a supportive work culture that values mental well-being.

 

This can be as simple as setting up a financial wellness program, where employees can gain the knowledge and resources they need to alleviate money struggles and fulfill financial goals. If a remote employee is looking to relocate closer to the office, a financial wellness program can help them figure out credit score requirements for a home. Similarly, if an employee has student debt, a financial program can help them create an action plan to help give them proper guidance to pay it off. Programs like this are a great way to provide employees with the help they need to lower stress and increase productivity, without breaking the bank.

 

Encourage a Healthy Work-Life Balance

Work-life balance is a vital part of a company’s culture and can also have a significant impact on employee mental health. Making sure employees aren’t overworked and have time to enjoy themselves outside of the workplace is key to supporting their emotional well-being.

 

Offering flexible working hours, remote or hybrid work options, and encouraging your team to use their PTO are all effective ways to promote a healthy work-life balance. These initiatives will allow employees to focus on their needs and mental health without feeling overwhelmed by work.

 

Offer Ways to Destress

Stress in the workplace is often inevitable, no matter what job you have. However, too much stress can be overwhelming and can quickly lead to burnout.

 

To help employees cope, offer them ways to de-stress during the workday. This could be creating quiet spaces and game rooms, offering meditation or fitness sessions, or giving them walk breaks during the day. Offering employees easy access and opportunities to clear their heads in the workplace can help lower stress levels and feelings of burnout.

 

Incorporate a healthier work environment, whether it be fixing the office or giving employees a stipend to improve their work from home set up, to help promote a comforting work atmosphere.  Increasing natural light, decorating walls with calming colors and designs, and providing ergonomic workspace options are great ways to create a healthier office environment. Although small, these efforts can show you care about your employees and value their mental health.

Take the time to listen and understand your employee’s needs. Once you’ve taken everything into account, you can facilitate a plan of action to create a supportive work environment. In the end, having a positive company culture doesn’t just help your employees, it helps your company as well.

Ready to start your CRE search? Explore listings on Biproxi.com

Posted on

How Buying CRE is Different than Residential

Commercial real estate (CRE) is different from residential real estate. When most people think of buying a home, they think of finding the right house in the right neighborhood and making an offer. With CRE, it’s not that simple. There are extra factors to consider, and the process can be complex.

CRE Is Typically Bought and Sold as an Investment

Most people think of real estate as residential while overlooking CRE. While both types of real estate can be bought and sold for a profit, they are quite different. For instance, while people who purchase residential real estate often intend to live in it, the purpose of investing in CRE is to generate income. This income can come from renting out the space to tenants or from the appreciation of the property’s value.

CRE is usually financed with commercial loans rather than traditional mortgages. These loans typically attract higher interest rates and require a larger down payment than residential loans. As a result, buying CRE is a more complicated and risky endeavor than purchasing a home. However, if done successfully, it can also be much more profitable.

Looking for your nexts CRE investment? Start your search on Biproxi.com.

The Focus Is on the Bottom Line, Maximizing Profit for the Company

A significant difference between residential and commercial real estate is the focus of the purchase. When buying a home, individuals are focused on finding a property that meets their personal needs and wants. They may be looking for a certain number of bedrooms or bathrooms or enjoy a home with a big backyard. They will be considering decor-related issues like bed frame dimensions, mattress dimensions, and buying a medium-firm mattress.

In contrast, when companies buy real estate, they are focused on finding a property that will help them maximize profits. This means that they are looking for a centrally-located property with a high traffic flow large enough to accommodate the needs of organizations.

Properties Are Often Leased to Tenants, Rather Than Occupied by the Company Itself

With CRE, the company will typically lease the space to tenants rather than occupy it directly. As a result, it’s essential to consider the local economy and the availability of potential lessees when evaluating a commercial property.

Commercial leases tend to be longer than residential ones, so you’ll need to factor in the potential for a long-term vacancy when considering your investment. But if you do your homework and choose wisely, buying commercial real estate can be an intelligent way to build your portfolio.

There Is a Lot of Paperwork and Legal Red Tape to Go Through When Making a CRE Purchase

There is significantly more paperwork and red tape in purchasing in the commercial realm. This is due primarily to businesses being subject to a greater degree of government regulation than individuals. Buyers sometimes need to jump through many hoops to finalize a CRE transaction. However, working with an experienced broker can help streamline the process and make it as smooth as possible.

Commercial Properties Tend to Cost More

Another key difference is that commercial properties tend to be much larger and more expensive than their residential counterparts. Therefore, buyers must have deep pockets to enter the CRE market. But for those who do, the rewards can be significant. Commercial real estate can provide an excellent income and appreciation over time.

Location, Location, Location! CRE Deals Are All About Finding the Right Property in the Right Market

The adage “location, location, location” is just as valid for corporate properties as residential ones. The difference is that in the world of CRE, the focus is on finding properties that will be profitable. That means being in the correct market and finding the right type of property to meet the needs of the business.

A company seeking to expand its operations may seek a warehouse in an industrial park. A company looking to open a retail store would want to be in a high-traffic area with good visibility. Regardless of the type of business, the goal is always to find a property to help the company succeed. 

Do your homework to understand the local market before making any decisions. What types of businesses do well in the area? What is the vacancy rate? What is the average rent on similar properties? Researching these elements will give you a better idea of whether or not a particular location is right for your business.

Also, consider the type of property you need. As mentioned above, businesses have different needs regarding real estate. Make sure to choose a property that will suit the specific needs of your business.

Time to Consider CRE

CRE can be an excellent investment for those prepared to do their homework and navigate the process. While there are some critical differences between CRE and residential transactions, the rewards of CRE can be well worth it for those who are up for the challenge.

Ready to enter the CRE market? Read How to Navigate the Commercial Real Estate Buying Process.

 

Ready to start your CRE search? Explore listings on Biproxi.com

Posted on

7 Best Ergonomic Chairs That Will Fit for Your Work From Home Setup

Since the exponential growth of working from home over the last couple of years, a lot of workers are deciding to upgrade their “work from home” setups. This is in part due to the uncertainty of their working situation moving forward and because a lot of these workers did not have a suitable office setup in their homes.

Before, these workers could move around in their office, go for lunch and get exercise through their commute every morning and evening. Now, they are spending more time in one place, and if that time is spent in a chair that is not designed for working, it can take a toll on their body. Dining room chairs and couches are made for lying back, not sitting up, and getting work done.

So, what can be done? The first thing you can do is change where you sit. Sitting at your dining room or coffee table in the sitting room is not a suitable workplace, and you will feel that in your back! A proper workspace that is conducive for productivity will consist of enough space for a desk and an ergonomic chair, along with accessories to further improve the user’s posture. Therefore, we have put together a list of the best ergonomic chairs for your work-from-home setup, it is an extremely worthwhile investment for your long-term health.

Best Ergonomic Chairs That Will Fit for Your Work From Home Setup

Here are our top picks for the best ergonomic chairs that will help you with your posture and keep you fully focused throughout the day.

1. HermanMiller Aeron

This extremely ergonomic chair comes with a high mesh back and head cushion, giving the user the option to rest their head while still maintaining good posture. You can get this model in three different sizes, small, medium, and large and they all come with a 12-YEAR warranty. Seat angle adjustment, adjustable arms, and adjustable lumbar support can all be added to this chair for an extra cost. A list of the best ergonomic chairs for your home office would not be complete without this option from HermanMiller.

2. Flash Furniture Mid-Back Ergonomic Office Chair

If you are looking for a more affordable option, this model from Flash Furniture comes in at a fraction of the cost of the above HermanMiller office chair. It features a breathable mesh back that has a curve to provide ergonomic support, padded arms that can be flipped up for a larger seat area and a thick (three-inch) cushioned seat. This chair can also be customized to the user’s preferences, with the backward tilt and the seat’s height both customizable, along with the ability to lock the chair in an upright position.

3. Steelcase Leap Executive Chair

This office chair from Steelcase can morph its shapes to perfectly fit the body that is sitting in it and to support all movements throughout the day. It has four-way adjustable arms, with the width, height, pivot, and depth being customizable. The lever that lives below the seat makes it easy to control the height of the seat and the rollers on the bottom are smooth for easy maneuvering.

4. Branch Ergonomic Chair

If a desk chair that skips all of the bells and whistles and just gives you the basics is what you’re looking for, then this option from Branch could be the right choice for you. This chair is less the half of the price of some of the other options on this list and can come in three different colors: Gray, Light Blue, and Black. It has seven points of adjustment, including lumbar support, seat depth, and tilt. The weight limit for this seat is 300 pounds, the mesh back provides breathability and the contoured seat cushion ensures a comfortable experience.

5. X-Chair K-Sport Mgmt Chair

This chair from X-Chair gives the user the ability to choose what it is using this chair for, with adjustability in the backrest height, headrest and optional footrest and wheel casters, among other adjustable features. The armrests move in every direction and the headrest and footrest both move to ensure that the user is as comfortable as possible. This company also claims that the chair is stain and spill resistant as well, but we would advise to not test that!

6. HermanMiller Sayl

This desk chair from HermanMiller has a distinctive look that will be sure to make your home setup pop. It can come in many different color combinations, like Black/Slate Grey and Fog/Studio White. The plastic webbed back (that is inspired by suspension bridges) ensures the user is cool and the supportive cushion gives great support and comfort. This is a more affordable option from HermanMiller and comes with the same 12-year warranty that the previous option on this list does.

7. Ficmax Massage Gaming Chair With Footrest

The only gaming chair on this list comes in at the end, but it will not disappoint. It can support up to 300 pounds and can rock, swivel or tilt. The retractable armrests and footrest will make sure that you are in the very best position to get the most work done or relax if you are taking a break (they’re important too!). It has a 4.8-inch thick cushion for extreme support and comfort for those extended working/gaming sessions.

So, what do you think of the above options for the best ergonomic chair for your work-from-home setup? Do you think you will be picking up any of the options listed above or do you have any suggestions that you think belong on this list? We would love to hear from you in the comments below!