Commercial real estate is an ever-changing market since the onset of Covid-19 in 2020. The recent turn of events in the industry has left many commercial real estate professionals facing difficult questions. How can we survive the recent development? Where should we now focus our attention?
Life in the business world is never static. As businesses grow and change over time, so too do office vacancies and marketplace trends.
There are two types of market trends that affect the business world. First, is the ever-changing market of market demands. This changes constantly as a result of the prices of goods and services being driven up and down by the markets forces. The market trends for consumer products, tools, equipment, furniture, tools, household goods, pets, retailing, and travel are all constantly evolving. When the demand for something increases, then supply will come down, and when the supply goes down, then the price will rise again.
The second type of trend affecting commercial real estate is the change in vacancy rates and how they have been affected during the pandemic. Vacancy rates refer to the number of days the space is open for rent. A higher vacancy rate means that more people are interested in renting it and paying the property owner what they agreed to.
As vacancy rates decline, then rent prices rise. This means that the commercial property is paying more to rent it out, thus leaving less for the tenant to pay. As vacancies drop, the rental rates rise, and the effect is the property owner making more money.
So the question is how can a commercial property owner leasing out shared offices in Australia stay ahead of the market trends for vacancies? One way is to take advantage of shared virtual offices. These features allow the tenants to communicate with their clients can communicate with the office manager to find out how the office is faring in the marketplace. If they see an opportunity to create a collaboration or alliance, this allows them to manage both sides of the business at the same time.
With a shared virtual office, tenants can find out about market trends before they hit the real market. If the trend is not good news, then the landlord can take steps to stop the trend before it hits the market.
It is easier to stay ahead of the trends for vacancies and rents of shared office space than ever before. And with the technology that has become available to commercial real estate professionals, they can see what’s happening to the market for rental properties before anyone else can.