A lot has changed since the pandemic started. Gone are the days of office workers crowding the street to reach their fixed cubicles downtown. Commercial real estate is juggling with the pragmatic questions of the future of office space and optimizing a ready-made urban footprint. From tech companies to manufacturing and dotcoms, company leadership is rethinking the role of office space. Because we are now tasked with devising flexible work options, downsizing headquarters, and designing new work policies, the role of transforming residential condominiums into office space is now a consideration.
The current business climate has sped up the need for repurposed office space. Supply chain disruption has driven the cost and availability of building materials and labor sky high. Business owners are seeking options for building or leasing commercial space. The modern office needs have changed as we consider equipping homes for virtual meetings and creating safer meeting spaces for in-person collaboration. Employees’ needs are quickly evolving.
The Need for Office Space Isn’t Falling; it’s Transforming
According to VODI, the new demand for office space has gone up to 235 percent year-over-year, indicating a solid recovery from last year. The commercial real estate index VODI tracks unique tenant tours, both in-person and virtual, of office properties in core U.S. markets. It’s known to be the earliest indicator of upcoming office leases and the new tenant demand. (Bergeron 2021)
Repurposing Residential Condos into Innovative Office Spaces
We all know what a condominium is. It’s a living space owned by an individual and includes shared common spaces jointly held with others. Condominium living emerged in the 1970s, and it quickly became an effective alternative to traditional apartment leasing or single-family-owned homes.
Since most of the infrastructure, including roads and public transportation, is often already in place, transforming residential condominiums into office space is an innovative step by landlords to attract tenants across industries. Businesses of any size, new or established, can lease an office condo to work in an environment that allows flexible work options, occasional team meetings, and client meetings. It’s a win-win.
A growing number of business owners are shifting their interest towards residential condominiums as office condos to maximize benefits and optimize costs. The new age of commercial real estate and technology has opened doors for even smaller companies and tenants to lease and enjoy the luxuries of larger office space without building or renovating a commercial space. The concept has caught on and made inroads in various regions, including the Houston area.
Leasing or buying a residential condo office space works as effectively for businesses as it works for residential condominium owners.
Significant Benefits of Office Condos
Everyone is riding on the wave of change in the commercial real estate space – employees, employers, tenants, and landlords.
Any business looking for a small office set up in an established location can find office condos in various configurations and sizes. Imagine having your first office in the most popular area of the city. What image will you be building amongst stakeholders? It’s a unique opportunity.
While each tenant is responsible for the upkeep and maintenance of their individual condo space, your dollars go further by being able to split the cost of the maintenance and repairs of the surrounding common areas. It another opportunity for business owners to save facility costs.
You can lease another condominium in the same building or at the closest location as your business grows. Upon lease expiration, you have the flexibility to either extend it or relocate to another office that meets your new needs and your budget.
Condominiums are strategically developed in metropolitan areas with access to public transportation and other inviting amenities such as shopping and restaurants. This translates to convenience for your employees.
Is the Condominium Office the Right Choice for You?
Businesses looking for a flexible alternative to traditional office space can look at leasing a condo office. They are convenient and budget-friendly. As the demand for massive offices is shifting. Experts believe office condos are the future of agile and adaptable work solutions.
Oliver CRE has equity in residential condominium spaces for lease. We have relationships with several homeowner’s associations (HOAs) and manage the relationship between owners and tenants. This creates a frictionless management experience for condominium owners and provides a high level of representation for tenants creating real value for both.
For the right business, it’s an excellent chance to start building equity, control operational expenses, and retain brand value. We are here to support you with all your commercial real estate needs. Our commercial spaces are located in strategic areas of Houston, the Energy Corridor along I-10, Spring and The Woodlands.
For more information, reach out to us at 281-558-1111.
Works Cited
Bergeron, Paul. “New Demand for Office Space Highest since Pandemic Onset.” GlobeSt, 30 Sept. 2021, www.globest.com/2021/09/30/new-demand-for-office-space-highest-since-pandemic-onset/.