Several factors are spurring businesses into taking action on their office space and existing leases, with the aim of getting the best out of their employees while also trimming unnecessary costs.
Increased flexible working, the pressure to rein in costs, and elevated office vacancies, all converging amid the unpredictability of the global economy and future of work, are leading to a wave of renegotiated office contracts in which tenants overwhelmingly have the upper hand.
Landlords are offering fit-outs, reduced make-good obligations, rent-free periods, and the use of flexible or ‘third’ space – in many cases for the entire duration of a lease – as just some incentives to retain their tenants.
Meanwhile, some occupiers are becoming landlords themselves by subleasing their excess office space.
In this episode, JLL tenant representatives Jessica van Raay and Dirk van Velden discuss with Rebecca Kent the pros and cons of every option.
JLL Perspectives