As we navigate the constantly changing CRE market, commercial tenants, landlords, brokers, and investors alike must revise their strategies. From building design to market stats, it is important to stay well informed before jumpstarting new contracts, projects, or agreements. Recently, I’ve come across a few articles that could be helpful in the current state of the commercial real estate market. They discuss the importance of design in building longevity, understanding CRE vacancy and availability rates, and the advantages and disadvantages of investing in office spaces.
Designing Buildings with Character
Rather than allowing unused buildings to turn to ruin, designer Thomas Heatherwick is hoping to put an end to construction waste. He is encouraging architects and city planners to make more fascinating buildings that trigger our natural connection and fascination with buildings and structures. This could help decrease the potential for buildings to become abandoned. Considering building design more deeply could go hand in hand with ‘prioritizing human health and joy in architecture’ according to Heatherwick.
Vacancy vs. Availability Rates
For commercial tenants, navigating the CRE market lately may feel difficult. The key to finding what you need in a commercial space is being specific. When looking at vacancy rates, it’s important to consider that they don’t typically account for spaces that are under construction or awaiting the end of a current lease. Before negotiating your next lease, be aware of both vacancy and availability rates to create leverage on your side of the agreement.
Investing in Office Spaces
Although businesses are largely shifting to remote and work-from-home structures, the demand for office spaces may see an increase soon. Investing in office space can be quite lucrative, like all investments, there are positives and negatives to consider.
