Everyone was affected by the global pandemic in 2020, including the commercial real estate market. Commercial leasing all but stopped during the mandatory stay-at-home order. Now, it’s a new year and the economy is growing stronger, and businesses are looking for new spaces to rent. So, what’s new for Clifton Park (NY) and the commercial real estate (CRE) market? Here are six trends in 2021 that may become the new norms.
6 Commercial Real Estate Leasing Trends in 2021
As businesses reopen and begin planning for the future, many are looking for commercial space for rent. Here are 6 potential trends that may influence the commercial real estate leasing market.
1. Coworkers Return to Work
Remote employees were common last year, but many are returning to work as the vaccination rollout continues. As companies reopen they often need office space for their employees.
Some businesses let their leases expire and are looking for new office space for rent. Others have employee health and safety in mind and need a larger space to accommodate social distancing.
2. Short-Term Leasing
Before Covid-19, businesses often opted for longer leases. They had the security of knowing employees wouldn’t have to move to a new location in the middle of a project. Long-term leases are often more cost-effective. Post COVID, tenants may find they can lock in shorter terms at favorable rental costs and escalations.
Business owners learned in 2020 to expect the unexpected. They realize being locked into a long-term lease is not always cost-effective.
3. Increase in Subleasing
Some commercial property owners are open to subleasing. Not every company is bringing their remote employees back into the office. Others are keeping some of the staff at home and only requiring essential workers to show up at their desks.
Companies with extra space will be looking to sublease the offices to other businesses. It gives other organizations a chance to relocate or expand without being locked into a traditional lease.
4. Warehouse Space Remains Popular
Last year saw a huge rise in online shopping, especially with consumers staying home and avoiding contact with others, outside their Covid pod. It’s not only safe, but it’s also convenient. Merchants need warehouse space to store their inventory. It’s not only large businesses looking for large warehouse space, but also smaller companies that have entered the online marketplace.
5. Repurposing Retail Space
Some businesses gave up their retail space entirely in 2021.These empty spaces are being repurposed as offices for lease. It’s a new trend that is predicted to stay throughout 2021.
6. Revitalized Industrial Areas
The Covid-19 pandemic illustrated the problems within the country’s supply chain. Commercial real estate leasing trends in 2021 predict the abandoned industrial areas will see a spike in revitalization. Along with office space for lease, there will also be an increased demand for storage for online retailers.
Commercial real estate leasing trends in 2021 look promising in Clifton Park (NY) and across the United States.