Street View of What Office Tenants May Really Be Up To….
Recently I wanted to find out first-hand what tenants were doing with and in their office space, so I picked up a clipboard and personally visited a number of office tenants in suburban Class A office buildings. One complex had a huge, 80% empty, parking lot, Class A, and well maintained. I went door-to-door, not trying to move anyone or convince these tenants to do anything different. I did this on a Tuesday, a traditionally ‘back to the office’ workday, and about half the office suites on each floor were locked and dark. No one there. The ones I did visit, ranging from 5-10,000 square feet, had a sea of cubicles, window private offices, and on average had just a handful of employees present. I spoke to various employees and office managers who told me there were employees who came in from time to time.I could see in most cases lots of cubicles without any personal effects that showed they were unused by any specific individual. For the most part, companies seem to be okay paying for space that is only very-partially used. My informal survey may be an anomaly, but I think it may be more typical across the board than people might think. In many markets we have a 20-35% vacancy rate, but on top of this is a significant chunk of companies who are paying their rent but are for the most part locked and dark. Then there are another significant office segment where only 10-20% of the space is being occupied at any one point in time. I did also encountered a handful of firms where all t their workers were back in the office, but this was the exception. Any of you have similar or different experiences?
