The Office is Dead. Office, Industrial, and Warehouse Business Models Have Forever Changed.

Is the Office Dead? Will Office, Industrial, and Warehouse Business Models be Forever Changed? The simple answer is YES. Working from home will forever become a part of the post-pandemic norm.  

How will the Post Pandemic affect the demand for the Office, Warehouse & Industrial buildings we work in?

Unfortunately, we already know the pandemic plowed over many retail business models in certain industries. Commercial real-estate has forever changed, but what will be left of it all as the dust settles in 2021?

According to the CNBC interview with CBRE CEO Bob Sulentic by Kevin Stankiewicz  

Associate Reporter, Bob stated, “You’ll see a hybrid scenario. ... We think 80% + of that occupancy, if not more, will come back.”

Will companies reduce their “Office Footprints”? Moving forward into the last half of 2021, there will be more hybrid creative working environments with the workspace returning to the office. Virtual, remote working “working from home” is here to stay.

Downsizing the office space into a more comfortable, safe work environment is the new norm moving forward.

1. People don’t want to be close to others in common areas.    
2. They don’t want to open doors that hundreds of others have recently touched.  
3. They don’t want to get on an elevator with other people.    
4. One story multitenant office facility is the new demand in commercial office space.  
5. Parking outside just outside the office, then walking straight in and opening only 1 – 2 doors.

On the other hand, Commercial Warehouse properties have seen record activity levels throughout the pandemic. JW Management and many other commercial real estate firms in the Dallas Fort Worth Metroplex have seen strong demand for leased industrial and warehouse space. Warehouse spaces with flexible office buildout space ranging from 2,500 – 15,000 Square feet are in high demand.   

A tsunami of new business is hitting both the Residential and Commercial Dallas, Arlington & Fort Worth as bigger companies are picking up and moving from California, New York, New Jersey as more tech companies are opting to move their operations to Texas with a lower cost of living as well as more favorable tax laws.

Adriana Cruz, executive director of Economic Development and Tourism for Gov. Greg Abbott’s office, said the office has 196 active relocation or expansion projects in its pipeline.  

Unfortunately, if you choose the wrong commercial space or office, your business will be greatly affected. It’s a must to find the perfect office space for you and your team. If you’re leasing a space, you need to ensure that your choice is the most ideal.   

In 2020, many companies switched to a remote-working setup, which terminated their commercial leasing contract. However, as we’re getting ready for almost all our workforces to come back to the workplace in Q3 and Q4 -- what do you do if your workers have nowhere to return to?  

If you have terminated your previous leasing contract and trying to find a new area, or perhaps you’ve started a new business and are trying to find a home for your company, this article may just help you out.

What 3 Factors Should You Consider When Downsizing or Selecting Your New Office Space?

All the office & warehouse leasing choices look great, but you are not sure if they will work for your specific business. You are not quite sure what needs to be considered in your new building rental space -- your choices seem to be endless!   

Most importantly, Location, Location, Location is not first on the list anymore. Location is still extremely relevant, but safety and ease of employee mindset are more important. Choosing the right office and or warehouse industrial space creates an environment that you and your employees enjoy working in.  

Listed below are three factors to consider when choosing your office or combination office warehouse.

Property Layout, Design & Safety. Is the office or warehouse property conducive for conducting business? 

According to research, many factors influence an individual’s productivity. Elevators are just one of them. Imagine waiting in line to get on an elevator that only 3 people can ride on according to elevator pandemic recommended safety protocol. It will take 3 to 5 times longer than normal to use an elevator in a highrise building. Imagine the late person who forces their way on your elevator and breaks protocol? If office workers want to stay safe, elevator experts have some practical advice; Stay in your corner, face the walls and carry toothpicks (for pushing the buttons).

Other Considerations that Influence Office & Warehouse Layout Design and Safety Include:

• Is the multi-tenant complex 1 story or multi-story with elevators?  
• If we have another pandemic, do you feel comfortable getting into an elevator with other people?  
• Is the air quality and ventilation adequate?  
• Do you like the office design’s look and feel?  
• Are both natural and artificial lighting important to your team?  
• What is the outdoor “Green Space” like? Is there a space to go destress?  
• Can you take a walk during lunch to get some exercise?  
• Does the property management company quickly respond to a tenant’s request?  

Needless to say, you would like your staff to always be productive when in the workplace. Therefore, it’s better to look at the property’s layout, design, and safety to assess if the properties are best for the eight variables above. Take your time to make the correct choice, selecting your office space is like picking out your next home. You will almost spend as much time at the office as you do in your own home.

Office Location – Will it be easy to get to work or visit customers?

Location, Location, Location is extremely important when choosing an office or warehouse. Location is the second most important factor when selecting your office space. You would not want your workplace to be in the middle of nowhere -- where your employees and or customers will have a challenging time driving into the office. If you have a service team that drives out to your customers' location, the drive time and traffic can make or break your ability to be profitable and compete.  

An easily accessible location is very important to any company's success -- Easily getting to the office is important so that your employees can come on time, feel great, and ready to accomplish their tasks on their to-do lists.  

Stop and consider traffic patterns as well as multiple routes to the office if a large highway construction project happens. What about parking? Is their plenty of parking spaces as well -- both are major concerns for employees. Not only can parking, traffic, and elevators make them late, but they can also bring stress at the beginning of the day.

Office space locations accessible by private and public transport, situated within a business district are set up to become more successful when your team expands. Locating an office close to other entertainment and necessities like coffee shops, restaurants, or even the Texas Rangers Baseball or Dallas Cowboys Football stadiums, or concert venues will improve employee morale.

Is the price right for the office industrial or warehouse space I am interested in leasing?

You’ve found the perfect commercial space – but is the leasing price fair for the marketplace? Does the rental price match the location and amenities included?  

Location greatly influences the rental price of any commercial area. Finding the balance between location and your budget is crucial for your business. You want to consider the expense of office space since it will affect your company’s net income. Your company could end up with the burden of a high lease. It is important to see if the landlord is willing to work with you to make some simple modifications to the space if needed. Will the landlord be your general contractor if more detailed changes to space are needed? If the landlord has their sub-contractors and can manage the buildout, it will be much easier and usually more cost-effective.   

Triple net (NNN) charges are common in the industry as a pass-through to the tenant. You need to consider that there also might be maintenance fees, associated dues, parking charges, or other additional fees that come on top of your monthly lease. Take the time to read the lease and compare the total cost of ownership.   

Perform research and site visits to find your ideal office space. Nobody wants an uninspiring office with a leaky roof that you got a good deal on – workers would only be stressed out and unproductive. A good office or combined office-warehouse space can uplift spirits and boost productivity levels, greatly affecting your company’s success.

About Craig Wasilchak

Craig Wasilchak is the COO of JW Management Company is a Family-owned & operated Commercial Property Management & Leasing in the Dallas Fort Worth Metroplex. Craig is also an active member of the Entrepreneurs' Organization, as he is the owner of a business earning over $1M in annual sales.

JW Management Company owns and operates multiple properties throughout the DFW metroplex.

THE ARLINGTON TEXAS PROPERTY LOCATION: Our 10 acre Westgate Business Park is adjacent to Arlington's Entertainment & Restaurant District. The Commercial Business Park is located 1 walking block East of "Globe Life Park" (Texas Rangers), Globe Life Field, & "Texas Live" with many superb restaurants. In addition, the property is only 3 blocks from the "Dallas Cowboys AT&T Stadium" & "Six Flags over Texas". The building space for lease consists of Office, Retail, Flex-Space, including Commercial Warehouse & Industrial building spaces.

THE DALLAS TEXAS PROPERTY LOCATION: Our 4 acre 1625 Mockingbird Business Park is on Mockingbird Road west of Love Field and, in the Stemmons Corridor District area (Between I-35 and Love Field Airport). The building space for lease consists of Office, Retail, Flex-Space, including Commercial Warehouse & Industrial building spaces

Craig has built and sold multi-million-dollar businesses over the last 25 years. As a B2B Mentor with extensive leadership, mentoring, and entrepreneurial skills -- his goal is to teach other entrepreneurs how to grow and run profitable businesses in a disrupted business world utilizing practical business strategies. If you wish to connect with Craig here on LinkedIn, just send an invite! You are also more than welcome to subscribe to his YouTube Channel “The B2B Lead Generation Movement”.

Visit our commercial properties in Arlington and Dallas. If you have any inquiries, do not hesitate to send me a message here on LinkedIn.