As the office market continues to evolve, your landlord is the deciding factor for maximizing the value of your workplace experience. Here’s why it matters more than ever who you choose:
Zombie buildings are on the rise.
The risk of loan defaults means some office buildings are no longer being maintained to expected standards, tenant improvement projects are not being funded, and buildings are being sold or converted, effectively becoming “zombie buildings.”
As an OC broker recently shared, “We’re living a ‘Tale of Two Markets.’ Either you have a stable landlord and are enjoying the benefits that brings or you’re leasing from an owner who can’t meet debt obligations and your building is at risk.”
Tenant improvements aren’t being funded.
Landlords with high vacancy rates may make big promises for tenant improvements (TI) in order to lease open space. Unfortunately, they may not have the capital to back up these promises.
When a landlord promises significant TI, it’s important to do your due diligence and ensure the landlord has the financial means and motivation to fund these improvements.
Brokers are curating listings based on ownership.
A “flight to stability” is underway across the office market. To help clients avoid questionable landlords, some brokers are considering a “stability score,” similar to a building’s sustainability score or walkability score, that rates the landlord’s financial strength.
If you’re working with a broker, ask them to share information about a prospective landlord’s financial strength and market reputation.
Companies need options, but not every landlord can provide them.
As companies continue exploring different hybrid work scenarios, some are still rightsizing and need shorter leases with more flexible terms. The right landlord will have the financial strength to tailor solutions to your unique and evolving needs, from flexible lease terms to workplace enhancements.
Irvine Company’s unmatched capital resources ensure we uphold our standards of excellence, regardless of market conditions. Our customers lease with confidence, knowing that ongoing enhancements mean their workplace experience will get even better over the life of their lease.
Put our financial strength to work for your business.
