Before the COVID-19 pandemic, only about 6% of Americans worked primarily from home. However, by May of 2020 – during the height of the pandemic – a full one-third of the workforce no longer commuted to the office and instead did their daily tasks from home. Now, in May 2022, the work-from-home era is ending and investors are in a great position to capitalize on commercial properties in cities across the nation.
Is Work-from-Home Really Ending?
Whether work-from-home is better than working in an office is a topic that has been debated endlessly over the last two years. For some people – and for some companies – working from home improved productivity and operations, resulting in more profits. In other cases, companies found that their employees were less productive at home and that profit margins fell significantly. It is safe to say that while work-from-home is not coming to a screeching halt, most companies are returning to the office – including giants like Google, Microsoft, and Amazon, just to name a few.
What Investors Need to Watch
As more and more companies return to the office in the coming months, they may be looking for newer, better, and more efficient spaces for their employees. For example, Tech.co reported back in September of 2021 that Google continued to invest in multibillion-dollar office spaces. Google is not alone, either; Amazon, Microsoft, and other giants bought up office buildings left and right. If you haven’t yet invested in commercial property, now is the perfect time to get started. Office space values will only continue to climb, and the sooner you get in the game, the more you stand to gain.
What to Look For
Investors who are buying and selling office space are in a unique position right now. Commercial space is in very high demand thanks to the end of the massive pandemic-driven work-from-home movement, and companies are making some serious changes when it comes to the properties they buy. Here’s what you should keep in mind.
- Potential is as important as current market value. The current value of a commercial property is important, but in today’s market, consider the potential value. If you convert a space in a great location to a move-in-ready office building, what would the value be for that property?
- Location really is everything when it comes to commercial office space. Many companies have learned that providing their employees with better experiences can significantly boost their productivity. As such, rather than asking employees within a 150-mile radius to commute to a single central location, these companies are purchasing suburbian office spaces to shorten commute times and keep employees closer to home. Look for up-and-coming neighborhoods and suburbs where the profit potential is huge.
- Don’t accept the first offer you receive, especially in an in-demand area. If you own commercial office space in a popular area, don’t accept the first offer you receive. Chances are good that more than one company is eying your property, so wait until you get a few offers before you make a decision. Don’t wait too long, though; these companies are anxious to get their employees into their new spaces.
People all over the United States and around the world are returning to work after spending the better part of two years working from home. Investing in the right pieces of commercial property is critical since you can easily turn a significant profit.