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Five things for CRE owners, tenants to consider before returning to the office

Many companies around the U.S. are still trying to figure out their return to the office plan as the COVID-19 pandemic subsides. Questions remain as to how many employees will return to their respective offices, but since the answer won’t be zero, commercial real estate owners must be prepared for their tenants’ inevitable return.

One way for CRE owners to ensure they’re prepared for their tenants coming back to the office is to ask them what they will need to make their experience a successful one. Firmspace Chief Operating Officer and Forbes Real Estate Council member Kenny Kane recently shared five inquiries for CRE owners and tenants to ponder so that they can return to right type of office space.

Question 1: Is your entire team coming back to the office? How often?

Not all employees are ready to return to the office full-time as the COVID-19 pandemic still lingers. It will be difficult to determine what the ideal build-out would look like, so CRE owners would be better served to ask tenants specific questions about their office return plans. These questions could include if flexible remote work policies will be implemented, will the tenant have a head count limit and if workers will be required to spend a specific amount of time in the office. Posing such questions will give the property owner and tenant a better idea of how much square footage they’ll need.

Question 2: What do your health policies look like now?

Businesses might still be ironing out their return to the office policies, but they’re best served to have a health policy set before employees come back. Companies should be able to say if they will have an in-office mask policy and if so, will it be throughout the whole building or just common areas. Whether or not employees will be required to maintain social distancing should also be addressed ahead a company’s official return date. These questions will not only help workers feel better about coming back to the office, but also help property owners estimate the right square footage amount and if their space is a good fit for the tenant.

Question 3: How will you handle in-person meetings?

Many companies have gotten used to video conferencing sites like Zoom during the past year. If businesses are bringing people back to the office however, face-to-face meeting frequency is likely to increase. Either way, companies will still need videoconferencing equipment in their conference rooms to conduct meetings with remote colleagues or clients. CRE owners should understand what a tenant’s needs are for meeting rooms to ensure that they’ll be able to meet them.

Question 4: Does your whole staff need downtown office space?

Given the current public health concerns, it is reasonable for CRE owners to ask businesses to consider if every employee needs to have a downtown workspace. CRE office space is in high supply right now, but tenants might be better served to take on a smaller space that comes with the right number of private offices as opposed to signing a lease for a bigger space that might end up with unused areas.

“By limiting the number of employees with regular access to downtown office space, employers may be able to afford a premium option for those employees who do need a private, secure space to work,” Kane writes.

Question 5: Does your March 2020 real estate still work for you today?

The COVID-19 pandemic changed a lot of things since last March, including businesses’ real estate needs. A lot of former office layouts are not conducive to today’s best public health practices, for example. Other businesses might feel their old office space can be adjusted to fit their current needs. Inquiring about a tenant’s former space might not lead to a full-on renovation, but it could encourage executives to think about their employees and what worked for them as they conduct their CRE search.

“There’s a deep market for those looking for commercial real estate today, and landlords are catering to renters’ needs,” Kane writes. “By taking a moment to look back, there’s still time to recapture some of what made going into the office an experience commuters were eager to drive toward.”

Joe Dyton can be reached at joed@fifthgenmedia.com.

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