As the world continues to rapidly transform, so too does commercial real estate. The Truss operations team has a front seat to inventory and tenant demand, so below are some findings and recommendations to help listing agents and property management better position their assets during this time.
Space Amenities and Layouts are Evolving
The CRE industry is churning out predictions surrounding the future of office space, and we are beginning to see some of these emerge in our inventory. We’re seeing an influx of spaces offering additional square feet per person, an emphasis on cleaning and support staff and plans to better manage common areas and amenities for tenants. Serendipity Labs in Bethesda, MD, for example, has readily adjusted their coworking density to meet tenant health and safety expectations without compromising their flexible lease options. If you are already making changes within your portfolio, let us know, and we will update your listings to include this information.
Types of Offices Truss Tenants are Interested in Remain the Same
Over the past couple of weeks, we have seen tenants start to reopen their search for office space on Truss. Spec suites remain attractive to tenants given that they are move-in ready, cater to flexible layouts, and are easily adaptable to changes in the workplace and workforce. During this period, we have added new-to-market spec suites in all of our markets. In my market, Washington, D.C. Metro, spec suites are the most commonly leased office space. They offer the flexibility, privacy, and high-end finishes that are ideal for actively searching tenants in trade associations, government affairs and consulting. We continue to offer complimentary virtual tour shoots across our markets which include the tour, photos, and floor plans for your Truss listing as well as personal use. Please contact us if you are interested in shooting a tour of your space.
Incentives are on the Rise
Despite future pricing uncertainty, we’ve seen an influx of rate decreases throughout our markets – in Washington D.C. Metro, I’m seeing rate cuts of 5-10% on certain direct leases and subleases in key submarkets. Our DC broker, Cam Kostyack, has found that landlords are more willing to provide concessions such as additional months of free rent if a tenant can commit to a lease during the pandemic. Coworking and flex space providers are also adding promotional pricing to remain competitive. Studio by Tishman Speyer is running attractive promotions on one-year lease terms while doubling down on support staff, health and wellness supplies and maintenance services. If you are offering different incentives, make sure that we are aware so we can update your listings.
Space Offerings are Diversifying
Even prior to shelter-in-place, companies like West, Lane & Schlager, Cresa, and Savills have been marketing more flexible subleasing options, such as single offices or individual workstations in larger floor plates or 2nd generation space. We’re seeing these subleasing options expand as tenant advisory firms are offering flexible start dates and space configurations to maintain tenant engagement and deal flow. At Truss, we can list your space with various leasing options all at the same time. For example, your sublease for 5,000 sq. ft. can also be listed as a flex space with month-to-month single offices and workstations for lease. We also offer real-time updates should you choose to shift your leasing options.
Want to Discuss Your Listings?
We’re here to help you get in front of the right tenants. Reach out to book complimentary Matterport tours of your portfolio, learn about flexible leasing options and update or add your inventory to our marketplace. We accept listings in any format.
Bay Area: Kaleigh Graham, firstname.lastname@example.org
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Washington, D.C. Metro: Tommy Maday, firstname.lastname@example.org