The covid pandemic has changed working arrangements dramatically in its wake, and office space has become an increasing casualty of that destructive aftermath.
With so many office workers having to necessarily work remotely because of lockdown procedures in 2020-21, and many actually preferring it to having to go to the office every day, an unexpected new stay-at-home work culture has emerged, with businesses fighting a losing battle to return to a (largely) 100% office-based workforce.
A knock-on effect of this has been the shuttering of many outlets previously used as office space, to the point where entire blocks of property in such major cities as New York, Philadelphia, Chicago, Dallas, and San Francisco (to name just a few) are becoming virtually derelict as the formerly-dominant office culture becomes a relic of a former pre-pandemic age. With empty square feet and derelict space, the buildings in question become beacons for crime and homelessness as business owners face higher debt maintenance costs against lower lease revenue and more and more defaults occur.
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What could be done to reverse this regressive trend? Well, attempting to force workers back to the office is becoming a lost battle, as technology has made interaction easier without physical presence. So perhaps using the empty office space for alternate use is a direction best to explore. And for some budding entrepreneurs, it could be a goldmine of opportunity.
Many small startup businesses often like the idea of a prestigious downtown address for their business, giving it a respectability and an air of credibility in networking with potential clients. Single units could easily be converted into hubs for such startups. Using empty units as product storage space or distribution centers for said products instead of larger, costlier warehouses is also a prudent option that has seen success in some instances.
These vibrant, modern, air-conditioned units could also be utilized for classroom space, especially in some inner-city districts where older, non-air-conditioned, potentially unsafe school buildings have been left to decay because of budget cuts. Conversion into living space, either public or private, has also been mooted by some quarters.
Other options include converting to gyms (a booming sector wherein space is increasingly being sought) or even movie sets, where some very major films have indeed converted derelict buildings into new state-of-the-art, world-class soundstage facilities (The Lord of the Rings trilogy being one of the most prominent examples).
Ultimately though, all this costs money, and grand ambitions inevitably have to be financed at some point. Aside from the basic costs of conversion – which would be substantial – some of the above suggestions may not yield a profit for some time if ever, and in the case of public housing and/or education, will never return a profit in their lifetime.
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Plus those owning businesses in suburban and rural areas, who have seen a marked increase in commerce thanks to former office workers staying home, working remotely, and spending more in their local areas as opposed to inner cities, will not be particularly happy at attempts to ‘poach’ their customer base from them by enticing them back to the metropolis areas.
In the final analysis, there are no easy or quick answers, and those that own or lease office space are going to have to make some tough decisions; either discontinue the lease at the earliest opportunity, or if owning said space, embrace the entrepreneurial spirit and diversify its raison d’etre
Times have changed and business owners are being forced to embrace and deal with that change… whether they’re prepared or not.
