All posts filed under: Office

Office Market Game Changers

Several “X” factors are changing the game in the office market. Variables such as the low cost of capital, movement to open floor plans, implementation of technology in the workforce, and the desire for businesses to avoid long commutes have shaped the landscape of the office market. Low Interest Rate Environment The cost of capital has been relatively low and as a result a number of large office tenants have purchased, or are considering the option to purchase their own office facilities rather than continuing to pay rent to a third party landlord. For companies that have the access to financing or capital, the strategy of purchasing allows them to fix their occupancy costs and allow firms to build equity in real estate. Desire for Efficient Office Space “Collaborative” office space is becoming popular among designers and technology firms. The modern space plan of an office space allows for the reduction of cubicles and private offices. The increase in space efficiency decreases the demand in the marketplace for larger office footprints. Adoption of Mobile Technology …