ROUND ROCK, Texas — It goes without saying that “going to the office” doesn’t look the same since last spring, with the spread of COVID-19. Businesses have closed and workers are online, using technology to do their jobs and have meetings via a computer screen. It’s been a good and a bad thing: more time with family, less gas used by vehicles, and yet, where is that in-person co-worker camaraderie?
Rachel Madison has written a great article that is posted on the Round Rock Chamber of Commerce’s website. She talks about new business trends when it comes to office space, and how it seems the work-from-home model may be here to stay.
Following are the contents of her article:
By Rachel Madison
When it comes to working in an office, things look a lot different at the end of 2020 than they looked at the beginning of the year. Due to COVID-19, working from home and logging in to virtual meetings is the new normal, but for those who still go into the office, major changes have occurred as well. From staying socially distant from co-workers to heightened cleaning protocols, it’s safe to say the workplace environment has changed forever.
That is no exception in Round Rock, where commercial real estate organizations and office supply companies are seeing big shifts in trends that they expect to be around for the long haul.
New Trends
One of the biggest moves businesses are making is rethinking their real estate footprint, said Wyatt Russell, president of Round Rock-based 180 Office Solutions, adding that many are looking to sublease their space or leave if given the option because many of their employees are working from home or only coming into the office part time.
Subleasing is popular for a couple of reasons, said Brent Campbell, commercial broker for Round Rock-based Don Quick & Associates.
“Businesses aren’t able to make enough money to stay open or they’ve realized they are just as productive with remote employees as they were with bodies in the office and choose to downsize,” he said. “Some large corporate clients have expressed that the companies are downsizing square footage across the board. This is especially true in the office sector.”
Campbell added that some retail tenants have closed their doors after not making it through the pandemic, so some landlords have gotten space back.
“That does not seem to be the case in the office sectors,” he said. “Office tenants may be trying to sublease space, but they are also still paying rent.”
Another trend the pandemic brought is leasing is slightly down. Campbell said this is because some businesses are not confident in their own viability and would prefer to wait.
“I have personally only completed a handful of leases this year,” he said. “The majority of that has been industrial leases. Most of the office leasing has been renewals where owners are helping tenants where they can. This was especially true during the shutdown.”
When it comes to buying and selling commercial real estate, both are up due to extremely low interest rates, Campbell said, adding that some sellers are increasing their level of motivation to sell to move product sooner rather than later.
“We are currently seeing interests in the low 4 to 4.25 percent,” he said. “The only real issue is available buildings to buy. The market is still very tight, and we expect that to continue into 2021.”
Click here to read the complete article posted on the Chamber’s website.