We’ve been hearing several things about the future office space trends and how the work strategies would evolve in the near future. But what we need to see is that if those trends make some sense or they are just the baseless myths. Yes, several sources have brought to you the future trends which seem to have no sense at all. May it be because of the lack of experience in the commercial real estate sector or the poor understanding of workplace statistics; but the business owners must be aware of the real trends and the myths that are making rounds.
Here are 4 such baseless myths that a business owner must be aware of.
MYTH 1: Suburban office space market is dying
The first and quite thoughtless myth is that the office space market in suburban areas of a city is dying a slow death.
How did this myth arise?
It’s just that the millennial employees (people born between 1980 and 2000) want to live in urban areas, so the companies started opting out of the locations in suburban areas for their offices to attract the best millennial employees. But the recent research data seems to be in conflict with the belief saying that millennial employees prefer living in central business district. Of course, there are a few people who wish to live in urban areas, but there are employees who prefer suburbs as well.
Fact is that the office space market in suburban areas is actually thriving and is in its effort to attract the workforce of millennial employees. So, the demand for office spaces in suburban areas has not declined at all.
MYTH 2: Private offices to disappear soon
For the past several years, traditional private office spaces have the common cubicle design where the employees are assigned a cubicle or a cabin based on the job function and the seniority. But lately, there’s been a new trend of open layouts started to spur employee collaboration, and some companies have also taken it way ahead by experimenting it out of private offices.
This has been the reason for the industry to project it as the end of private office era. But the fact is that, private offices never really go away as they are still prevalent in many industries. There are also some backlashes for the open office layouts which is said to be decreasing the productivity of employees. So, there’s no chance that private offices disappear (At least not in the near future).
MYTH 3: No need of real estate agents
Incredible popularity and usage of technology has been the main reason for this myth to take a rise. Of course, the tenant can find more information about the availability of office space in the market using technology, but the fact is that office space leasing is a complex process and it certainly requires experts to look after the deal.
Even now there are many small companies and large enterprises that prefer to have a commercial real estate agent while leasing their office space. Because, unlike booking a hotel room or an air ticket, leasing office space is one of the huge financial decisions they make, and they don’t want to go take a wrong step.
Also, an experienced real estate agent can help tenants in negotiation process which they can never win over the landlord if they don’t have a representative. So, the day might come in future where a tenant doesn’t need an agent, but only when there’s a fragmented population of office building owners, and they standardize all the complex variables.
MYTH 4: Co-working is the future
Co-working is definitely an interesting concept that’s been in the trend lately. Yes, co-working is in trend for one main reason, and it is nothing but reduced initial investment. Most of the start-ups are opting for co-working so that they can cut down a huge investment on office space and get started with their operations. But definitely, it’s not at all the future of office space, and it can never match the benefits offered by a dedicated office space.
Even if the start-ups start their operations with a co-working space, they would definitely have an office space of their own once they are financially stable. So, the model suits only for the start-ups who’ll have to run to coffee shops or restaurants with their laptops to have a professional work environment.
These are a few myths that a business owner must be aware of so that he/she can make a wise decision when the time comes to rent an office space.
Make sure you explore the facts before stepping into the market in search of office space, or seek help of an experienced real estate agent who can guide you through the process. Furnished Office Bangalore is one such expert property management firm that can help you find an office space for your business while steering you through the process. Contact us for any assistance in commercial real estate deals.