The Great Recession Is History, But Did It Change The Office Market Forever?
Well let’s just say there are growing signs the worst economic downturn since the Depression has left a lasting and indelible imprint on the office market.
Basically, after being forced to squeeze out any fat they could find in their operations in the dark days of 2008 and 2009, corporate bosses in Greater Boston and beyond learned to operate leaner and meaner than ever thought imaginable.
Just take the chat I had the other day with a downtown Boston lawyer who is also a shrewd observer of the local real estate scene.
He noted that a number of major Back Bay and Financial District law firms were renewing leases, but taking smaller amounts of space.
Even more intriguing, one firm with a large swath of suites in the Prudential tower has reconfigured all its offices so they are pretty much the same. It’s a space saver – and a major cultural shift as well. No more mini palaces for the top players.
It’s where the office market, here in Boston and across the country, appear to be going, notes Jones Lang LaSalle in a recent “office occupiers” report.
All the downsizing and layoffs over the last two years have left companies sitting on big blocks of space they no longer use.
“As hiring continues to strengthen, companies will be poised to expand their office footprints again, but location decisions will be placed under more scrutiny than ever before and real estate will take on a more strategic role within the overall business,” said Jones Lang LaSalle Senior Vice President John Linell. “Enhancing productivity will take center stage through workplace mobility programs that lower corporate real estate costs, increase collaboration, generate higher space utilization rates, and help companies meet their sustainability objectives.”