Commercial real estate trends turn as workers return to offices one year into pandemic

Workers, employers going back to the offices

Briona Arradondo reports

TAMPA, Fla. – – Experts say that trends in commercial real estate give an indication of the future of office space. Brokers and economists say they are seeing the impact the pandemic has on return to work.

A year ago this month, COVID-19 forced many companies to work remotely. Since then, the way companies look at commercial real estate for office space has changed.

Tampa broker Steven Silverman shared what his clients are looking for.

“This particular company will be looking for a smaller space, and they have learned that they don’t all need to be there at the same time,” said Silverman of Tampa Commercial Real Estate.

Now, more companies are working in mixed environments, some staying away and others returning in person. Silverman said the health crisis had shown employers what to do without.

“Whether or not they were using the space, they were still in business and paying their leases now when the time to renew. It may be considered,” said Silverman.

The Tampa Bay market is growing, so more office space is in the pipeline. However, brokers expect demand to change.

“One trend I’ve seen is people moving into offices in the suburbs, just moving out of town and taking smaller spaces,” said Silverman.

Going to work in person used to mean shared spaces, but office furniture makers also said that has changed.

“The number one thing we see is they want barriers in their offices and where people work and grow in their workplaces,” said Bill Adams, co-owner and president of Reimagine Office Furnishings in Tampa.

Adams expects a decline in demand in the next few years. However, he anticipates another pandemic, such as how companies can reduce the spread of a virus in the workplace.

“We don’t know how to do that yet, and I think that’s going to be a big focus on the furniture makers because it’s going to be a big focus for the people who buy office furniture,” said Adams.

Real estate agents said the market could change and they will wait and see how well office space recovers over the next few years.