Commercial Real Estate has taken a hit over the last few months. With stay-at-home orders in effect, along with retail shops closed down, and other state-wide closures, tenants may be reconsidering whether or not they still need commercial real estate to run their business. So, will Coronavirus be the end of real estate as we know it? Commercial real estate owners need to think creatively about how to tackle the changing consumer demands and shift their businesses to align with their client’s needs.
So, how can commercial real estate businesses begin to rethink their offerings to ensure not only to the safety of their tenants, but also that they are meeting their tenants needs?
First, commercial real estate brokers need to consider proactively reaching out to their tenants. Ask about their plans to return to work, if they haven’t already. Help your tenants develop action plans and inform them of the ways you are making your facility safe for their return.
The safety of your tenants should be a shared responsibility between you and the tenant. In order for employees to return to work, they must feel safe. Tenants and landlords need to work together in order to ensure proper safety precautions are in place.
Another way you should prepare your facility for the return to work is to ensure you have shut-down protocols in place in case of additional Statewide or Federal closures. Remain flexible with your tenants, as the fear of a second wave is still on the horizon.
Aside from protocols to put in place within your existing facilities, you must also consider how to innovate beyond your traditional business model.
Consider new ways to serve your clients. Aid clients in developing their return to work programs. As tenants continue to understand how they will take their next steps, they may be looking to upgrade to more space. Consider how you can help each of your tenants to achieve their long-term goals.
Another way you can think creatively about your offerings is by providing additional flexibility in your leases. Tenants and landlords alike are going through uncertainty when it comes to paying and receiving rent. Many tenants may be looking to renegotiate their lease. Try to work with your tenants to think outside of the box as you renegotiate.
Lastly, real estate companies may want to consider partnering with design firms. Work with a design firm to make your facility more social-distancing-event-friendly. Moving forward, tenants may be looking for a space to collaborate and socialize with employees and clients. Therefore commercial real estate owners should find new ways to recreate their space to cater to these needs.
As you continue to navigate the uncertainty involved in returning to work, consider new ways to innovate your approach, and create a sustainable business well into the future. Need help managing your risk?