Tenants increase the distance whenever they can study or work from their hometowns. Thus many landlords had to reconsider rental conditions and lower prices to keep their tenants. But for some tenants, this was not enough and more than 20% of the rented properties were vacated.
The vacated Airbnb rentals turned into long-term several months housing ones. Holiday properties experience a similar several-month rental. At the heart of these trends are those employed in the IT sector, because they can work from anywhere and they are best prepared to work remotely.
OFFICE SPACE & BRICK-AND-MORTAR
Remote work vacated some of the office space. The newly built office spaces have a vacancy in the range of 2-3%. The question is: could vacant office buildings become superfluous and can they become residential ones? The answer still seems vague and distant, but it is a fact that such a question arises for the first time in our country.
The IT outsourcing, utilities and professional services sectors preserve their leading positions in office space demand.
The hybrid work model looms quite possible – office, home, shared pace. In the context of the delayed dynamics of office space rents, landlords will continue offering more stimulus and relief, such as grace period, tiered rent, decrease in agreement term, etc.
Brick and mortar vacated by small and local traders is being merged and occupied by traders operating on larger commercial scale. E-commerce will rapidly and to a larger degree continue to compensate the loss from closed brick and mortar.
More often than not, online and physical shopping is perceived as an equable ‘experience’ by customers instead of two disconnected actions.
The construction of commercial parks at the entrances of cities near highways continues at an accelerated pace, as they offer in one place 24-hour shops, restaurants, parking, car wash, recreation, shopping and other amenities.