How has COVID Impacted Office Rentals?

The crisis generated by the COVID-19 pandemic has led to the recalibration of more and more spaces in office buildings, as companies temporarily turned to remote work and work-from-home, or even completely freed up workspaces.

Maintenance costs of office buildings have increased, on average by 30-50% in the last six months. This is mainly due to higher utility costs, higher wages in the field, and more rigorous maintenance of public buildings, as a result of COVID-19 prevention measures. The pandemic has prompted owners of office buildings to invest large sums in equipping them with equipment needed to protect employees and customers.

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The increases in facility and property management costs of office buildings are significant, up to 50% in the last 6 months, amounts that are transferred directly to tenants. In other words, people are paying more money now for renting an office, than they did before the pandemic. Despite this, affordable office space is available at many in demand executive suites Denver locations.

The office market declined especially in the first quarter of 2020, and experts do not expect significant moves on new contracts, except for companies that are pressured to move or expand, in a context where their representatives still do not know how the activity will be carried out in the future or the way in which the business will evolve.