There has been a paradigm shift in the office market, occupiers are taking control! this regrettably hasn’t in the large part been down to landlords willingness to change, it has been a reaction to occupier choice.
This change has only come about recently. The rise of flexibility and choice in the office market offered by new age providers has forced those traditional landlords to change their mindset. Change, or risk exclusion by occupiers who now have real options.
We have seen the rise of serviced offices and this is a good thing and not just for those that run them. Occupiers crave a fair deal and buildings/offices that can adapt to their growth plans. As a business owner I can’t with any degree of certainty predict where we will be in 2 years let alone 5, but until recently 5 year deals where the only thing on offer. Business owners spent more time worrying about their property commitments than about their employees or their futures.
We would rarely risk a 5 year fixed term on our home so why would we on our offices?.
Progressive landlords of “traditional leased office space” have taken note and are starting to offer real choice not just on lease terms but how a future “client” might be keen to take space.
I truly believe that if traditional landlords offered more to their future “clients” and stopped viewing leases as simple markers for capital value growth then occupiers who are wedded to serviced space would see the tangible benefits of leased space.
For the reasons above I am excited about the future office landscape for those “landLORDs” who are willing to embrace change and to view the next interested party as a “client” not just a “tenant”. For those that don’t want to embrace change don’t be surprised when occupiers vote with their feet!