Modus’ Post

Navigating Today’s Competitive Office Market: Landlord Incentives and Tenant Priorities 🏢✨ In today’s competitive office market, landlords are offering concessions and incentives to attract and retain tenants. Tenants increasingly prefer fully fitted turnkey spaces in prime locations for quick move-in and set-up. Rising fit-out costs impact both landlords and tenants, making rent-free periods a popular incentive. Key factors tenants prioritise include accessible locations, robust security, quality infrastructure, flexible space design, and energy-efficient buildings. On-site amenities, sufficient parking, high-speed internet, and cost-effectiveness are also crucial. Professional representation ensures tenants secure fair terms, cost reductions, and enhanced workspace efficiency. Understanding these factors helps tenants make informed leasing decisions. 🔗 Visit our website: www.cires.co.za 🌐 CIRES Property Solutions (Pty) Ltd Neil Stephen, Grant Race, Pierre Bezuidenhoudt, Mark Hawke #WeKnowProperty #CIRESInsights #CommercialProperty #RetailSpace #IndustrialProperty #CIRESPropertySolutions #CommercialRealEstate #TenantNeeds #PropertySolutions

Rzeczpospolita sounds the alarm: office rents are rising, and it takes over 400 days to find a tenant." How do they know? From REDD's analysis! In Aneta Gawrońska's article, you'll also learn: 👉 how many new offices entered the market in the first half of 2024, 👉 what the average rental rates are, 👉 and how the office vacancy rate is behaving. You'll find interesting #insights from the commentators as well. "The Warsaw market, with 7.4 million square meters, accounts for over half of the existing office space. Regional cities collectively account for 6.9 million square meters," notes Krzysztof Foks, Head of Research at REDD. "The highest rents are for offices in central locations, with excellent access to public transport and a wide range of services—either in the building or the surrounding area. These are also energy-efficient buildings that meet the latest quality and ESG standards," comments Katarzyna Gajewska, an expert from CBRE. Jarosław Pilch from Savills Poland highlights the high costs of fit-outs and emphasizes that over half of the transactions are renegotiations. Meanwhile, Jakub Bereś from BNM Real Estate Advisory speaks about the increased demand for ready-to-move-in office spaces. For more details, head to the newsstands and read the full article! Or download our #report here https://lnkd.in/dyXkJ9-n #realestate #REDDreport #CRE #proptech

Case for office retrofitting stronger as rent gap hits 35% Analysis by Knight Frank has found that the average rents achieved for second-hand offices in London that are not energy efficient (EPC C rated and below) are now 35% below prime rents, the gap having widened from the 27% difference seen in 2020. However, retrofitting and refurbishing older office buildings to provide modern, sustainable workspace […] Access the full story now at #realassetinsight: https://lnkd.in/eaVU23GU

Case for office retrofitting stronger as rent gap hits 35% Analysis by Knight Frank has found that the average rents achieved for second-hand offices in London that are not energy efficient (EPC C rated and below) are now 35% below prime rents, the gap having widened from the 27% difference seen in 2020. However, retrofitting and refurbishing older office buildings to provide modern, sustainable workspace […] Access the full story now at #realassetinsight: https://lnkd.in/eaVU23GU

🏢 𝐖𝐡𝐚𝐭 𝐭𝐡𝐞 𝐅𝐥𝐢𝐠𝐡𝐭 𝐭𝐨 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐌𝐞𝐚𝐧𝐬 𝐅𝐨𝐫 𝐓𝐡𝐞 𝐎𝐟𝐟𝐢𝐜𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 🏢 The "flight to quality" is transforming the office market as corporate tenants seek premium properties amid economic uncertainty. Here's what corporate tenants need to know: 🔹 𝐃𝐞𝐦𝐚𝐧𝐝 𝐟𝐨𝐫 𝐐𝐮𝐚𝐥𝐢𝐭𝐲: Class A properties offer modern amenities and prime locations, attracting tenants despite higher costs. These top-tier properties provide features like advanced technology, eco-friendly designs, and superior access to transportation, making them highly desirable even at a premium price. 🔹 𝐒𝐭𝐚𝐭𝐢𝐬𝐭𝐢𝐜𝐬: Prime office spaces have 84% higher rental income and lower vacancy rates (14.8%) compared to the broader market. This statistic highlights the significant financial benefits and stability that high-quality properties offer to corporate tenants. 🔹 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: 1 in 3 commercial landlords are at risk of default; and tenants favor stable, high-quality assets. By opting for premium properties, tenants can reduce the risk of dealing with financially unstable landlords, ensuring more reliable and secure leasing agreements. 🔹 𝐆𝐞𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜𝐚𝐥 𝐒𝐡𝐢𝐟𝐭𝐬: Companies are moving to lower-cost regions like Florida, enhancing value propositions. These areas offer a business-friendly environment with lower operational costs, making it easier for companies to invest in quality office spaces while maintaining financial efficiency. Tenants should prioritize high-quality buildings to ensure stability and attract top talent. To do so, you should partner with an experienced Tenant Rep team, like the ones at iOptimize Realty®. Reach out to us today to learn how we can help! #OfficeMarket #CorporateRealEstate #CRE #OfficeLeasing #FlightToQuality

Commercial real estate is still a smart move, even with market changes. Businesses always need space, whether it’s for offices, retail, or warehouses. Plus, commercial leases are longer, meaning more stable income. While some areas might be shifting, like retail, others—like e-commerce and flexible office spaces—are thriving. The key is finding the right spot that fits the new ways we’re working and living. It’s all about adaptability, and that’s why commercial real estate stays a solid bet. #commercialrealestate #smartinvestment #realestate #businessspace #adaptability #workspace #flexibleoffice #marketchanges

Second-generation office space is becoming an area of focus for owners and landlords. In "I’m Flexible #3," Scott Homa - Head of Americas Property Sectors Research at JLL - explains how previously occupied office spaces are being renovated and repositioned as attractive, cost-effective solutions for tenants.  As new construction slows down, landlords are finding new opportunities in upgrading these spaces to meet tenant demands. Learn why second-generation space is on the rise in this highlight from I’m Flexible #3.  More from the conversation here: https://lnkd.in/eNcxaUw3  

Maximize your commercial property's potential by creating mixed-use spaces that cater to the needs of both traditional office tenants and co-working professionals. This strategy can increase tenant retention and rental income while promoting a dynamic and collaborative work environment. #commercialrealestate #realestatestrategy

🏢 𝐖𝐡𝐚𝐭 𝐭𝐡𝐞 𝐅𝐥𝐢𝐠𝐡𝐭 𝐭𝐨 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐌𝐞𝐚𝐧𝐬 𝐅𝐨𝐫 𝐓𝐡𝐞 𝐎𝐟𝐟𝐢𝐜𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 🏢 The "flight to quality" is transforming the office market as corporate tenants seek premium properties amid economic uncertainty. Here's what corporate tenants need to know: 🔹 𝐃𝐞𝐦𝐚𝐧𝐝 𝐟𝐨𝐫 𝐐𝐮𝐚𝐥𝐢𝐭𝐲: Class A properties offer modern amenities and prime locations, attracting tenants despite higher costs. These top-tier properties provide features like advanced technology, eco-friendly designs, and superior access to transportation, making them highly desirable even at a premium price. 🔹 𝐒𝐭𝐚𝐭𝐢𝐬𝐭𝐢𝐜𝐬: Prime office spaces have 84% higher rental income and lower vacancy rates (14.8%) compared to the broader market. This statistic highlights the significant financial benefits and stability that high-quality properties offer to corporate tenants. 🔹 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: 1 in 3 commercial landlords are at risk of default; and tenants favor stable, high-quality assets. By opting for premium properties, tenants can reduce the risk of dealing with financially unstable landlords, ensuring more reliable and secure leasing agreements. 🔹 𝐆𝐞𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜𝐚𝐥 𝐒𝐡𝐢𝐟𝐭𝐬: Companies are moving to lower-cost regions like Florida, enhancing value propositions. These areas offer a business-friendly environment with lower operational costs, making it easier for companies to invest in quality office spaces while maintaining financial efficiency. Tenants should prioritize high-quality buildings to ensure stability and attract top talent. To do so, you should partner with an experienced Tenant Rep team, like the ones at iOptimize Realty®. Reach out to us today to learn how we can help! #OfficeMarket #CorporateRealEstate #CRE #OfficeLeasing #FlightToQuality

Office take-up in Birmingham increases by 12% YoY in H1 2024 Mark Walsh, EMEA Head of Corporate Account Management, Global Occupier Services at Savills, adds: “The commercial real estate landscape is evolving post-pandemic, with a clear shift in occupier demands. The scarcity of prime office spaces is becoming apparent, influencing both uptake rates and rental prices. Occupiers are now prioritising flexibility, quality, and sustainability in their work environments. This trend suggests that developers who can meet these new standards may find themselves at a competitive advantage, as businesses are willing to hold out for spaces that align with their updated criteria.” #ukproperty #realestate #officespace https://lnkd.in/d4WBM_D5