0422_ACRE:BOMA Digital Edition - Page 17

ACRE / BOMA OFFICE GUIDE
Lesa Stewart
Associate Director of Asset Services - Northern California , Cushman & Wakefield
Immediate Past President and Chair of Education , BOMA
How is the pandemic continuing to affect the office market ?
Although the U . S . office market has been negatively impacted by the pandemic , the worst appears to be behind us as signs of improvement continue to emerge … ( In Sacramento ), the office market continues to struggle as companies sort out their returnto-office plans . The lasting impact of remote work on office leasing won ’ t be known for at least three to five years . … As vacancy increases , we anticipate landlords to remain firm on pricing with concessions such as free rent , moving allowances and options for tenants to terminate their lease or downsize . … Beyond the shortterm , recovery will be tied to occupier and employee willingness to return to the office and new life science and bio manufacturing tenants looking to enter the market from outside the region .
What is BOMA doing to keep up with an evolving industry ?
As the industry changes , so do the priorities of our members . To effectively meet their needs , BOMA International and BOMA Sacramento have shifted not only the manner in which we disseminate information , but the information itself . BOMA International has developed comprehensive resources called “ Deep Dives ” on timely issues , including the psychology of tenants returning to the office , creative options for vacant spaces , how to raise talent in today ’ s challenging job market , etc . … Additionally , our delivery platforms have had to change as well . From virtual education offerings including pre-recorded training to live instructor-led remote certification courses , BOMA continues to shift our delivery methods to meet our members ’ needs . We also understand the importance and value of in-person networking opportunities and education , allowing for enhanced peer-to-peer connections .
Bernardo Hubbard
Vice President , Office Brokerage , JLL Board Member and Director at Large , ACRE
What will the hybrid work model do to office real estate for both owners and tenants ?
The pandemic has brought into focus the de-commoditization of office space , meaning the office is no longer viewed as four walls , endless rows of cubicles and a potluck once per quarter . As tenants compare options in the market , the cheaper office on paper may really be more expensive because of its negative impact on employee engagement and well-being . Employers and employees alike recognize the importance of the office as a place to connect , collaborate and innovate . For employers to retain and attract talent , an office will not only need to be visually appealing , clean and safe , it will need to provide amenities that employees value . … Finding the right balance between in-person and remote work will be critical to each tenant depending on their own needs and employee preferences . Those who don ’ t adapt and expect to resume doing business the same as it was pre-pandemic will be at risk of losing talent to companies that have adapted .
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