Commercial Real Estate: Contraction or Opportunity?

There is little doubt that the Coronavirus has forever altered the business landscape. One of these changes is real estate. Businesses of all ilks are reassessing their real estate needs.

As reported by Cleveland.com, the Chicago-based JLL real estate firm recently issued the results of a survey it conducted which show that 23% of the surveyed companies based in the Midwest said they will need reductions in space in excess of 20%.

In Northeast Ohio, large businesses are being extremely non-committal. Companies like Parker Hannifin, Eaton and Progressive — even Sherwin Williams which formally announced its plans to build a new headquarters weeks before the pandemic took hold — are being vague. Or, they’re being vague publicly. Who really knows the nature of C-Suite discussions behind closed doors?

Either way, things are changing and while some companies are realizing that reducing their footprint by eliminating now-unneeded space is a good way to reduce overhead, other companies are realizing that opportunities are being created. Perhaps your business is one that actually needs more space? Or maybe the existing space is awkwardly laid out and new efficiencies could be created with new space? Or maybe the location is inconvenient for employees? Or simply not prestigious enough?

The contraction of space needs by other companies will create opportunities for those businesses willing to take advantage of them. Good purchase or leasing opportunities are being created. Even better sub-leasing arrangements are being created. Now is the time to seize these opportunities if they would be advantageous to your business.