Office market has slowed down, but prospects are not bad

After the companies efficiently switched the mode of operation to remote work, today we can observe the following waves of returns to offices. According to Bartłomiej Zagrodnik, Managing Partner/CEO of Walter Herz,  after a period of stagnation, the interest in office space is increasing. 

“Tenants are willing to renegotiate lease terms, as well as rearrange the occupied space. One cannot fail to notice that the role of location in the selection of real estate has increased even more” Zagrodnik stressed.

In his opinion,  the shape of the office market is most strongly influenced by two trends today, that is the pursuit of cost optimization to reduce financial risk and efforts to ensure the safety of people returning to the offices.

“However, it has to be acknowledged that most tenants are now much more cautious in making decisions. Companies are carefully looking at all of their costs. They implement verification projects in terms of demand for space, based on assumptions about the new way of functioning and operation mode. What their real needs will be, however, remains to be seen in the next phase, when people return to the offices and new habits and expectations of employees are revealed. In addition, the situation is still dynamic. In the following months, many companies will suffer from the suspension of orders or purchases from customers,” he pointed out.

(WBJ)