02/15/2022

The Great Restructure:

How office leases are being renegotiated

Current office real estate markets are soft and favor occupiers, presenting associations with a unique opportunity to significantly reduce their real estate expenses. For the first time in years, landlords are entertaining creative lease restructures and have a renewed appreciation for their tenants.

Before embarking on a restructure, it is critical to understand what your organization’s future footprint will look like. As more associations embrace remote work and a hybrid workforce, they are hiring staff who work at home and who will infrequently, if ever, be in the office. Staff reluctance to return full time to the office is another consideration that is affecting the decision. A choice to restructure must consider these factors, as well as predict the use, need and purpose of the office post-pandemic.

Workforce Strategy Influences Real Estate Decisions

As associations contemplate the future of work, many still see the value in having a physical space to connect and collaborate with colleagues, donors, members and volunteers. The rise of remote work also means most associations will likely adopt a hybrid work model.

Please select this link to read the complete article from ASAE's Center for Association Leadership.