Shadow commercial space emerges
Shadow space is being released to the market as tenants become pragmatic about their space requirements and look to reduce occupancy costs, a new Bayleys' report shows.
By on-leasing some of their office property, a tenant can recover a portion of leasing outgoings without the inconvenience and associated costs of exiting a lease or relocating to smaller premises.
In the face of changing work models – boosted by improvements in technology and reflecting global best practice – large tracts of office space consolidated in one central location are increasingly being reviewed, says the report.
Some tenants are adopting a core + flex model with a more condensed centralised hub supplemented with satellite space elsewhere. Others are actively looking to sub-lease excess space to allow business continuity.
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