The ripple effects of Covid-19 continue to make waves through almost every facet of daily life. Over the last few years, shutdowns have given way to work-from-home policies, and these significant disruptions caused many employees to reevaluate their professional happiness. Perhaps unsurprisingly, many employees decided they weren't happy enough to continue with their current employer and quit. While some went to new jobs, others embraced unemployment in a movement now described as the “Great Resignation.”
The Great Resignation may be great for the individual, but the trend has severely impacted the New York commercial real estate sector. As employees and employers work to find common ground, office space real estate owners may find success by offering enhanced updates and amenities.
How Has the Great Resignation Impacted New York Commercial Real Estate?
According to an article published by Forbes, employee turnover affects office rental property in more than one way. First, if a company's employee numbers drop significantly, they may not need as much square footage. Second, the cost of employee turnover may cause a company to reevaluate its commercial leasing budget. Third, in an effort to retain current employees and entice new employees, companies are adopting more flexible in-office work requirements, thus reducing their need for office space.
However, the reduction in NYC office space rental demand could shift as employees return to work. Some experts predict the “Boomerang Effect” will follow the Great Resignation as individuals who left employment eventually decide to come back. It's difficult to know how the pandemic will continue to affect the NY real estate sector, but signs point to growth as those who fled the traditional office setting now find they miss the structure and camaraderie that can't be found in their homes.
Get Experienced NYC Real Estate Legal Solutions
When you need a NY real estate attorney, contact the office of Melvin Monachan, Attorney at Law. Our dedicated and experienced team can help you through mortgage default or acquisition. Call us today at (347) 389-1682 or contact us online.