Will Shared Working Space Disrupt Traditional Office Leasing?

In the now seemingly distant past, all work was about leaving your home and going to your office. Then the digital revolution changed that and gave people the opportunity to work within the comfort of their homes. Even startups that evolve into the leading companies of the world start from the homes of their CEOs.

The startup and freelancer mode of work hasn’t yet managed to dominate the working sphere, and we already have another trend that’s gaining in popularity and influence – the shared working space. Only a decade ago, shared offices were practically unheard of, and now we’re discussing their effect on the very existence of traditional offices.

But how much of an influence does this mode of work have? And more importantly, is it disrupting traditional office leasing?

CBI News, Commercial Real Estate, CRE AdviceCommercial Brokers InternationalFebruary 13, 2019commercial office building experience, office parking, office layout, office market, offices, office real estate, real estate returnsComment

Lots of New Supply Is Leading to More Concessions in the Office Sector

Competition for tenants in markets with an oversupply problem is pushing concessions higher, according to a first quarter 2018 JLL office report, which noted that while office rents grew overall by 1.6 percent in the first quarter, rent gains were outstripped by tenant concession packages. Allowances for tenant improvements (TIs) rose 3.5 percent in the first quarter to an average of $75 per sq. ft. That figure was even higher in markets where there is a lot of competition for tenants—up to $150 per sq. ft. for trophy properties.

RepostCommercial Brokers InternationalApril 27, 2018office market, office tenants, co-working market, office concessionsComment

COMMERCIAL BROKERS INTERNATIONAL