The Future of Office Space

In January, BusinessDen held a virtual panel discussion with developers and property managers to discuss what post-COVID workplaces might look like in the Denver Metro area. Here are some takeaways from the event.

What will tenants be looking for: 

Office layout: 

  • Similar to what we have been seeing, but more flex space. 

What do tenants’ plans look like? 

  • Most tenants with expiring leases want to buy time, but this is starting to shift. 
  • Seeing an increasing desire to commit to office space, but don’t know what that looks like, whether its full-time or part-time in the office. 
  • Some tenants are super stable, know what they want, and landlords are keeping an open mind (shorter-term leases, etc.). 
  • Tenants struggle with space planning for the future, especially when new-construction office space leases are 7-10 years. 

What will happen beyond work from home? 

  • Probably more flexibility, but not fully work from home. 
  • Not being in the office can cause loss of culture, lifestyle, retention, burn-out, mental health issues. 
  • Will see a shift back into the office. 
  • Students learning/working from home now may want an in-office/interactive work environment. 

Office space location: 

  • Some shifting towards suburbs but don’t write off downtown. 
  • Demand for Cherry Creek, and suburbs. 
  • Downtown suffering now but believe it will bounce back. 

Rent prices: 

  • Not seeing a decrease in rents, like tenants had hoped (nationwide). 
  • There may be a small drop in rents, and things like more allowance for tenant finishes. 

Additional information: