BOMA International COVID-19 Commercial Real Estate Impact Study

While COVID-19 continues to be a disruptive force for the office sector and its occupiers, the perceived value of the office as a key ingredient of business success remains strong. That is one of the major takeaways from a groundbreaking, nationwide study of more than 3,000 U.S. office space decision-makers commissioned by BOMA International, underwritten by Yardi and developed by Brightline Strategies. The study was designed to assess the latest in tenant sentiments relating to the pandemic, as well as its impacts on their businesses, attitudes towards the physical work environment and office space decisions going forward. The findings provide a clear picture as to the pandemic’s broader transformational effects on the office sector and what measures owners and operators can leverage to mitigate downstream risk.

To learn more about the study, read our press release.

Interested in participating in the second study, launching in mid-February? Contact covidstudy@brightlinestrategies.com by February 12.

 

   

 

Key findings:

  • 74% of respondents affirm their in-person office is operationally vital to their businesses, long-term growth and future success.
  • 65% of commercial office decision-makers continue to see significant value in on-site business operations, particularly as it relates to the three Cs: collaboration, coaching and culture.
  • The economic headwinds on office tenants are far reaching, with 33% of respondents saying they have experienced at least a 25% revenue decline since the onset of the pandemic and an additional 27% saying they could experience a similar or greater decline in the future.
  • While a strong majority see office space as vital, 61% of respondents across all tenant sizes report they will reassess space needs.
  • 78% approve of the response their current property owner or operator has implemented during COVID-19 and 77% are confident they understand how to reduce and manage risk in their physical office.
  • 47% of all tenants say their landlord’s coronavirus response exclusively has made them more likely to renew, the result of proactive communications and a renewed focus on safety and security.

To request a full copy of the report, please contact covidstudy@brightlinestrategies.com.

BOMA members: Check out our exclusive free webinar—now available on demand—providing an overview of the findings of this study, and discover the next steps you should take now to mitigate and proactively address emerging industry trends, shifts in workplace priorities and changes in tenant preferences resulting from COVID-19.

Inflection Point: Actionable Insights from BOMA’s COVID-19 Impact Study