What are we going to do with all these office buildings? If you pay attention to business media, it sounds like everyone is just going to keep working from home for… a while. So, will companies no longer have offices? In the world of Harvard Grace, we are not aware of a single company that has any plans to divest of its offices or even reduce their space. In fact, Excelsior Capital states that suburban office space is one of the most recession resistant real estate investments there is.
Will the post COVID world use offices differently? Most likely yes, but how it will be different will depend on each company’s management. Business Insider points out that Facebook and Amazon are both aggressively pursuing additional office space, such as Amazon’s new facility in Nashville that will host more than 5,000 people.
Why? It seems like corporate America should jump at the chance to shed a huge expense. However, every good management team knows that company culture is the key to productivity and growth. Peter Drucker originally said, “Culture eats strategy for breakfast.” What does that mean? It means that the way organizations work together internally, and the way management works with and leads their organizations, is more important than company goals and incentive compensation.
What does this have to do with office space? These successful, high growth companies know that you cannot create a strong company culture when everyone is working remotely. They need office space so their teams can be together. And in a post COVID world where offices will likely be set up to incorporate distancing for team members, this means organizations will need more office space not less.
Largely, what happens with commercial office real estate in the next couple years will depend on where you live. As we know, the 3 most important factors in real estate are location, location and location. That’s why Harvard Grace is ready to invest in the strong and bright future we see for commercial real estate in the middle Tennessee and Northern Alabama regions, where there are sure to be some incredible growth opportunities over the next 12 months.
If you would like to discuss your real estate needs or a commercial project, contact Stewart Heath firstname.lastname@example.org