OC Renewals Indicate Users’ Commitment to Office Space
Last year ended with a total of 2.1 million square feet of negative net absorption in the OC. And although total office leasing activity is down nationwide, renewals’ share of all leases increased during the latter part of 2020, according to CBRE.
This increase shows office users’ commitment to having physical offices despite the pandemic as many companies now more confidently look at longer term space needs, says Giovanni (Gio) Cordoves, Western regional president for KBS.
“Returning to the office allows team members to be more productive than they have been working from home all these months,” says Cordoves. “Research shows that productivity has decreased significantly among remote workers and fatigue has set in during the course of the pandemic. While some heads-down tasks can be accomplished while working alone remotely, companies are realizing that their team members need to be together in the office in order to spark creativity and collaborate effectively on major projects. Additionally, the ability to properly cultivate younger talent, promote company culture and establish a sense of team and community is significantly enhanced in a physical office setting. This is why we are seeing demand for high-quality office space that supports a team dynamic return in many markets throughout the country. Also, the likelihood of a safe and effective vaccine being widely available very soon is raising expectations for a faster return to the office.”