The Office market in the mid-atlantic benefits largely from the Federal Government and D.O.D Contractors occupying vast amounts of space. However, vacancy rates relating to office space almost everywhere have been on the rise.
Vacancy rates tend to trend a bit lower as you get closer to major metropolitan areas and higher when you reach the suburbs.
Today, as more people work from home, many businesses owners and property owners are discovering the “direct to consumer” effect which has devastated many office rents and raised vacancy rates across the country.
Consumers today are a lot less worried about where businesses are located and more worried about their level of service. Business owners are less worried about high end finishes in buildings with large marble floors and grandiose conference rooms. Business owners are more concerned with how comfortable their employees are and saving on office cost.
Many employees are more concerned with work/life balance and working from home helps many to achieve additional productivity and less stress with not having to commute.
While there will always be a need or want for some to go into the office it has been said that as many as 30% of current business may not return to the office and may continue to work from home for the foreseeable future.
This is having a major impact on the office market. Property owners and brokers have to be more creative in their marketing efforts and their investment decisions going forward. Here at Freedom Commercial, we have deployed several strategies to help our clients navigate these changing times. Our clients have been able to largely adapt and overcome.
Vacancy Rates have a direct impact on prices no matter which side of the table you are on. Therefore, it is important to have an agent that understands the marketplace and knows how to create opportunities for Landlords, Sellers, Tenants, and buyers.