2021 Office Market Outlook

    While market downturns aren’t anything new – many of us have ridden out one or two major ones firsthand – 2020 and the COVID-19 pandemic brought a level of unpredictability that couldn’t have been anticipated. Despite all the unknown, however, our team continues to find opportunities and help clients take advantage of the market.

    When business and economic considerations become dependent on how quickly a virus spreads, business-as-usual goes out the window. Rolling stay-at-home orders and business closures have resulted in mass layoffs, and subsequent financial hardships for some companies have led to even further job losses and even companies closing their doors entirely. All of this has naturally had an impact on the commercial real estate industry.

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    2021 Office Market Outlook2021-02-15T15:50:06+00:00

      A Year Like None Other

      It’s safe to say that 2020 has come with unexpected challenges. From the abrupt shift to a virtual office environment to the subsequent shifting of the Denver market, there has been a lot to navigate as a team this year. Our in-person meetings and gatherings might have been few and far between, but thanks to the ongoing drive and fortitude of Team Tributary, we have gotten through it and learned so much together as a team.

      We wanted to share a few of the biggest lessons, takeaways, favorite moments and more from navigating this unique time.

      Finding the perfect balance of persistence and patience

      Pandemic or not, our team has remained committed to pushing forward and delivering quality results for our clients. Working in this kind of industry can be difficult when there are macroeconomic factors at play that are out of our control. However, every day we have made a concerted effort to continue to be an advocate for our clients by providing valuable resources.

      Recognizing that our industry knowledge could provide valuable insight for companies across Denver, we launched our Tributary webinar series back in April and have hosted multiple events over the last several months with industry experts covering topics including navigating office leases, reopening your office and looking at the future of the Denver market.

      Practicing patience has been a valuable skill in getting through this year as we have all learned to navigate a new normal. It has also been important to remember to slow down, support each other and show empathy in any way possible.

      Staying connected as a team in new ways

      Ever since the stay-at-home orders required us to work in a virtual environment, we’ve had to pivot the way we operate, interact and communicate as a team. Open and honest communication has been key in making sure our new systems are working and things are continuing to move forward.

      Since culture is a huge part of our team at Tributary, it has been important to find ways to continue celebrating monumental milestones this year. Virtual happy hours and socially distant outings – including early morning mountain bike rides – have been a great way to stay connected and maintain a degree of normalcy on our team.

      Remaining committed to community involvement

      One important way we’ve navigated 2020 is through maintaining steady involvement in our communities, in whatever way we can. Giving back is ingrained in our culture, and this year in particular has shown us the importance of showing up for those in need.

      Recently, our team put together Thanksgiving baskets for young adults through Bridging the Gap, part of Mile High United Way’s program that helps young people transition out of the child welfare system with housing and personalized supportive services. These baskets were designed to help provide a sense of comfort and hope during an uncertain time and we’re grateful to have been a part of it.

      As the chair of the Catalyst Philanthropy Group within Mile High United Way, Senior Broker Natalie Geer helps plan a monthly virtual volunteering event as well as a professional development event. This year, they partnered with the Women’s Bean Project, a non-profit organization with the mission to change women’s lives by providing stepping stones to self-sufficiency through social enterprise. Together, they hosted a cooking show to share one of their famous chili recipes and raise awareness for additional ways to support the organization.

      Senior Broker Jona Behm plans to participate in local food drives as a way to improve the wellbeing of the neighborhoods she cares about.

      This year, Tributary has made financial contributions as a team to important causes such as Denver Active 20-30, Rocky Mountain Alliance Children’s Foundation, Social Venture Partners Denver and Big Brothers Big Sisters of America.

      While this year has been anything but normal, there is much to be grateful for. We look forward to continuing to serve our clients and our communities through the end of this year and into the next.

      A Year Like None Other2020-12-16T18:49:02+00:00

        ‘Tis the Season to Sublease

        As we close out 2020 and look towards a (hopefully) very different 2021, many companies are still unsure about what to do about their office space. One growing trend? Subleasing.

        As hundreds of businesses choose to downsize or leave their office spaces entirely due to COVID-19, sublease availability in Denver has jumped to record levels. At the end of Q3 2020, there were 4.3 million square feet of sublease space available, a 28.2% increase quarter over quarter. With total construction volume reaching 3.3 million square feet, and only 9% of the 1.4 million square feet of upcoming speculative office space leased, we are likely to end 2020 with a supply that significantly outweighs demand.

        Now is the time to take advantage of the market.

        If you’re not ready to sign a traditional lease, subleases provide a unique opportunity to secure quality office space. While each sublease has its own unique set of lease terms, many provide discounted rates or additional perks like fully furnished set-ups. It can be a great option to try out a new location or specific building while assessing more long-term solutions for your company.

        With a rollout of vaccinations on the horizon and expectations for a new normal by summer, it’s important to think ahead and secure leasing opportunities while they’re still available.

        Interested in learning more? Check out our available subleases on our brokerage page and LinkedIn page or reach out to us at andy@tributaryre.com.

        ‘Tis the Season to Sublease2020-12-11T17:44:36+00:00

          Q3 2020 Denver Office Market Outlook

          In a year that has been anything but predictable, it’s safe to say we’ve all been navigating quite a lot. Companies across Colorado have had to face many difficult decisions, including what to do with their current office space. During Tributary’s recent “Denver Office Market Outlook” virtual panel moderated by Partner and Managing Broker Andy Cullen, local industry experts weighed in on the current state of the Denver office market and what’s next for the Mile High City. Below, you’ll find a full recording of the panel as well as some key takeaways. If you have any follow-up questions, please don’t hesitate to reach out to us directly.

          Economic Impact of COVID-19 on Denver – Randy Thelen, Vice President of Economic Development, Downtown Denver Partnership

          • Denver has consistently ranked as one of the best-positioned cities to recover from COVID-19 due to multiple pre-pandemic factors including a strong economy.
          • Millennials are continuing to move to Denver at a high rate, even without jobs lined up.
          • Large tech companies are continuing to locate to Denver where there is access to top young talent.
            • One of the most recent companies to announce a move is Palantir, which is relocating to Denver from Silicon Valley.
            • Other-high profile tech companies like Facebook, Amazon, Google and Snowflake also have offices in the Denver metro area.
          • Restaurants and retail are feeling the impact the most:
            • Downtown’s restaurants heavily rely on foot traffic from conventions, events, sports games and more. With many of these events already canceled well into 2021, it will be a challenge for restaurants to attract the same customer base to drive sales.
            • Leaders are looking for ways to drive regional visitors back to the Downtown core with events such as a modified 9News Parade of Lights.
            • Destinations like Larimer Square have helped their businesses adapt to the challenges of the pandemic by closing their streets to traffic and allowing restaurants to expand their patios to allow customers to safely dine outside.

          How Denver Office Tenants are Shifting Their Mindset – Amy Aldridge, Partner, Tributary Real Estate

          • Tenant perspectives continue to evolve week by week.
            • Regardless of their circumstance, most companies are trying to reduce costs and operating expenses at some capacity.
            • Many companies are either subleasing their space or looking for subleases while they wait to make a long-term decision on office space.
          • With the expectation that by next July we will be in some type of new normal, tenants should plan ahead and take opportunities while market rates are low.
          • Flexibility is key when it comes to rethinking the office of the future. Many offices are testing out a hybrid work environment where employees can choose whether they want to work virtually or in-person at the office.
          • Companies in large high-rise buildings have been more hesitant to return to the office because of the number of touchpoints for employees between their homes and desks – including traveling in elevators and using common areas with other companies.
          • With slowing activity in Downtown Denver, we are seeing more leasing activity in suburban submarkets. Low-rise buildings with large doors or operable windows are attractive workspaces right now.

          Managing Office Decisions at a Culture-Driven Company – Todd Panella, Chief Operating Officer, Zivaro

          • Our company has seen outstanding productivity with remote work that requires solo heads-down concentration. But we still need face-to-face interactions in order to build business partnerships and get our product out in the market.
          • It is important for organizations to look past 2021. Now is the time to invest in a new space and continue building your culture so that you are in a good position when things are back to normal.
          • Being remote for so long has reinforced the need for in-person interaction with coworkers and employees.
          • Many companies are exploring a “free address” workspace, which are spaces without assigned seating. With fewer desks than total employees, this approach helps companies keep a smaller footprint and cut down on unused space.

          Supporting Tenants While Fulfilling Obligations to Investors and Lenders – Jon Buerge, Chief Development Officer, Urban Villages

          • There is a great need for adaptability during these uncertain times.
            • Not typically a fast-moving industry, real estate companies have had to quickly make decisions to navigate the challenges of the pandemic. We can no longer lean on the best practices of 2019.
            • COVID-19 has been an accelerator of change, and you see that no more clearly than with retail. We are seeing a wave of entrepreneurs test out new concepts that they wouldn’t normally be able to do. For example, Larimer Square has signed nine short-term leases to small businesses.
          • Flexibility of lease terms is a pivotal way to help struggling tenants.
            • Right now, tenants are typically not willing to sign long-term leases as there is still uncertainty as to how the pandemic will play out.
            • When managing tenant lease terms, a blanket policy won’t work. It is important to fully understand the fundamentals of each tenant’s business so that you can create a customized, individualized strategy to provide the best help and assistance.
          • The importance of partnerships.
            • Keep close contact with tenants, lenders and investors right now – these partners need to be a large part of the dialogue when it comes to decision-making.
            • Developers are seeing a lot of inside flexibility from lenders and investors. Don’t be afraid to ask for what you need.

          How Landlords are Thinking About Office Space – Allison Berry, Vice President, CBRE

          • While rental rates are remaining steady, landlords are open to additional tenant concessions like free rent and more TI dollars.
            • Office tour activity has picked up over the past month in downtown Denver.
            • Landlords are continuing to explore ways to incorporate more safety measures into their buildings, including increased air filtration, UV light sanitizers, increased janitorial staff and more.
            • Landlords are taking advantage of lower construction costs to build out spec suites and undertake additional improvement projects in common areas.
          • Tenants should not limit their decisions based solely on COVID. There’s more opportunity to negotiate favorable multi-year leases now than there will be once a vaccine is released.
            • With more than 2 million square feet of sublease space available in Denver, there is increased competition for direct lease opportunities.
          • As larger tech firms sign office leases in Denver, there is an increased interest from smaller tech companies who serve in adjacent support roles.
          • Owners and landlords continue to look for the right ground-floor retail as an amenity for their office tenants.

          Final Thoughts – Making Decisions Moving Forward:

          • If your company is able to, now is the time to take advantage of the market. Once there is a vaccine, that opportunity will be lost as activity and rates pick back up.
          • A company should not make a decision strictly based on COVID-19. You could be inhibiting your company’s future growth.
          • Keep in mind that people still want to work in great workspaces. While we can get our work done at home for heads-down work, we are missing that human connection that comes with in-person collaboration.
          • With challenges onboarding new employees and maintaining team culture virtually and the natural transition with leases, there will be a large pent up demand for office space in Denver by Q3 2021.
          • Now is the time for entrepreneurship. Take advantage of the flexibility and unique leasing opportunities that are available in the market right now.
          Q3 2020 Denver Office Market Outlook2020-10-29T18:47:44+00:00

            Denver Office Market Update Q2 2020

            Denver’s commercial real estate market entered Q2 2020 in a strong position, even as COVID-19 forced the majority of the state to shut down starting in mid-March. While Denver’s office landscape is starting to shift as companies re-evaluate their space needs, there is steady activity across the Denver metro area.

            Here are some highlights of Denver’s commercial real estate activity in Q2 2020.

             

            Downtown Denver

            • The market continues to shift as 58 new subleases have hit the downtown market since April 1.
            • Facebook announced plans to double the size of its office at 1900 16th St.
            • Occidental Petroleum Corp. is looking to sublease six floors totaling 130,068 square feet at 1099 18th St.
            • Dispatch Health raised $136M in Series C funding.
            • A parking lot at 1300 Cherokee St. in the Golden Triangle sold for $6.7 million.

             West Denver

            • Bancroft acquired Union Terrace Building for $11,327,200 or $132.62/sf. The building was 86% leased at the time of the sale.
            • Tap Rock Resources leased 23,000 sf at 523 Park Point Dr. in Genesee.
            • Golden View Classical Academy acquired a 54,396-square-foot building at 601 Corporate Circle for $7,783,400 or $143.09/sf.
            • Next Level Sports Performance acquired a 10,875-square-foot building at 4670 Table Mountain Dr. for $2,325,000 or $213.79/sf.

            Northwest Denver

            • Rowdy Mermaid, a kombucha startup in Boulder, raised $3.5M.
            • Crocs opened its new headquarters at ATRIA in Broomfield.
            • Office Evolution, a Louisville-based coworking franchisor, opened its 15thColorado location in Northglenn.

            Colorado Blvd/Glendale/Cherry Creek

            • The Citadel building in Cherry Creek sold for $33M.
            • Former Inn at Cherry Creek announced plans to reopen next year as The Clayton.
            • BMC Investments broke ground on a 6-story building in Cherry Creek, anchored by Equinox fitness club.

             Denver Tech Center

            • Vectra Bank submitted plans to build a nine-story HQ within Belleview Station.
            • Boom Supersonic, a startup looking to build commercial supersonic jets, raised $3 million.
            • The landlord of the six-story Tuscany Plaza in Greenwood Village sued Red Robin for unpaid rent.
            Denver Office Market Update Q2 20202020-10-07T22:13:35+00:00

              Black Lives Matter

              We believe that Black Lives Matter. We have been filled with sadness and anger watching the series of disturbing and tragic events that have recently taken place in Black communities across the country – including the deaths of George Floyd, Breonna Taylor and Ahmaud Arbery – and the fact that this has been a reality for far too long.

              Systemic racism continues to plague the United States. It is up to all of us to come together, acknowledge the problems and educate ourselves so that we can become part of the solution.

              Though we can never completely understand the adversities and fears felt by our Black communities, we are committed to listening and learning during this time. Here are some resources we’ve found helpful as we discuss as a team what actions we want to take as a group as well as individually.

              Black-owned businesses and causes to support in Denver:

              Informative books to start reading:

              • “White Fragility” by Robin DiAngelo
              • “The New Jim Crow: Mass Incarceration In The Age of Colorblindness” by Michelle Alexander
              • “So You Want to Talk About Race” by Ijeoma Oluo

              Podcasts to listen to:

              • “1619” by NYT
              • “The Nod” by Gimlet
              • “Code Switch” by NPR

              Documentaries worth watching:

              • “13th” by Ava DuVernay
              • “The Hate U Give” by George Tillman Jr.
              • “When They See Us” by Ava DuVernay

              Ways to donate your time and money:

              • Donate to the Denver chapter of Black Lives Matter.
              • Volunteer to help with clean-up efforts in Denver. Signing up for the Downtown Denver Partnership’s newsletter is a good way to stay updated on upcoming opportunities.
              • Donate to these Black-owned businesses, many of which were destroyed during the riots.
              • Helping Hand is a campaign started by Access PR to support Black-owned businesses affected by COVID-19 and recent looting from protests.
              • Support the Black-owned businesses in Minnesota affected by riots and COVID-19.
              • Donate to this list of small businesses and community effort programs that are asking for donations.

              These lists are by no means exhaustive, and we know that eradicating racism in all its forms will require persistence and long-term action. Please reach out to us if you have any suggestions for ways we can strengthen our support.

              Photo courtesy of photojournalist Chris Hansen, 9News.  

              Black Lives Matter2020-06-15T22:22:33+00:00

                Re-Opening Your Office Space Recap: Video + Key Takeaways

                Re-opening office spaces across Colorado requires thoughtful planning, clear communication and patience for employers, employees and property managers alike. During Tributary’s recent “Re-Opening Your Office Space” virtual panel moderated by Partner Amy Aldridge, local industry experts weighed in on what it looks like for companies to create and implement a successful re-entry plan. (more…)

                Re-Opening Your Office Space Recap: Video + Key Takeaways2020-05-15T19:59:38+00:00

                  Resource Guide: How to Re-Open Your Office

                  There are many factors to consider as you look to re-open your office while navigating COVID-19. With so much information out there, it can be hard to know where to start. Here are some helpful tips and resources for creating a plan that supports employee health and safety, while allowing you to resume your ‘normal’ business operations as much as possible.

                  Finding the Right Time

                  Across the US, different states and municipalities are lifting stay-at-home orders, including in Colorado.  It’s important to understand the scope of these new orders before making a decision to re-open your office. We recommend reading these orders in full to see how they might impact your specific business. While Colorado’s state government has issued guidance, there is no mandate as to when you should open. Make the best decision for your employees and business.

                  Resources:

                  The Denver Post: FAQ about new “safer at home” phase of Colorado’s coronavirus response
                  Colorado Public Radio: Gov. Polis’ “safer at home” guidance breakdown
                  City of Denver: COVID-19 Resources
                  State of Colorado: COVID-19 website and updates
                  Denver Metro Chamber: COVID-19 Resources for Businesses

                  Designing a New Kind of Space

                  The pandemic has led many design experts to reimagine office layouts. While it’s too soon to tell how this will impact the office of the future, in the near-term there are some specific space considerations re-opening businesses should take into account. The clearest rule is to implement social distancing measures within your office. This means decreasing the density of individual work spaces and limiting use of communal spaces. There are even some ideas around creating one-way walking patterns in the office to limit how often people interact. And if you currently use a ‘hoteling’ system with open seating, consider assigning designated seats for all employees to limit unneeded exposure.

                  Resources:

                  Denver Business Journal: Denver offices need to adapt after COVID-19. Here’s what’s most likely to change.
                  Gensler: Design responds to a changing world
                  IA Architects: What Happens When We Return to the office
                  Elements/Knoll: Considerations for Returning to a Healthy Workplace
                  Duet Design Group: Post-Pandemic Restaurant Design

                  Ensuring Health and Safety Measures

                  Top health officials expect COVID-19 to stay with us for quite some time. Once we get through this initial peak, maintaining social distancing, implementing health checks and increasing sanitation measures will be paramount to the health and safety of your employees. While not yet widespread, some landlords are considering temperature checks for employees and visitors entering their buildings. At the very least, be prepared to increase your office cleaning protocol. It’s also important to remember that your employees’ mental health and well being will be affected as they return to a not-so-normal workplace.

                  Resources:

                  Gensler: How Should Office Buildings Change in a Post-Pandemic World?
                  Centers for Disease Control: Resources for Businesses and Employers
                  OSHA: COVID-19 Control and Prevention
                  National Institute of Mental Health: Supporting Mental Health During COVID-19 Pandemic

                  Managing Your Team

                  Working from home has become the new norm for many of us. Re-opening your office may provide a welcome solace for people wanting some heads-down focus time and human interaction. For others, it may cause some anxiety. Be aware of your employees’ state of mind and help set the tone for reopening with clear communication, expectations and support. To help limit the number of people in your office at once, consider implementing a staggered schedule for employees who want to come in. By grouping teams who need to work together, you can instill a stronger sense of camaraderie and productivity. Also consider the individual schedule needs of employees during this time – some may need continued flexibility to care for older family members or children who can’t go to school.

                  Resources:

                  Denver Metro Chamber: Managing Employees Through COVID-19
                  White House/CDC Guidelines: Opening Up America Again
                  BCLP: U.S. Employer Guidance for Reopening the Workplace

                  Tributary is here to help you consider your office solutions and strategy during this uncertain time. Click here for a downloadable version of this guide.

                  Resource Guide: How to Re-Open Your Office2020-05-05T21:57:47+00:00

                    Video + FAQ: Navigating Your Office Lease During COVID-19

                    Tributary Real Estate recently hosted a virtual panel with top commercial real estate experts to discuss how companies should navigate their office leases during COVID-19. Our panelists answered some of the most pressing questions we’re seeing from our clients and others in the business community – from how COVID-19 is affecting real estate decisions to legal options for lease terms to how you should be negotiating with your landlord, and more. If you weren’t able to attend, please watch the video below. We’ve also included an FAQ that highlights our panelists’ key insights. A big thank you to all of our panelists:

                    • Andy Cullen, Managing Broker, Tributary Real Estate (Moderator)
                    • Amy Aldridge, Partner, Tributary Real Estate
                    • Jeff Miller, Attorney, Husch Blackwell
                    • Sarajane Goodfellow, Market Leader, Unico Properties
                    • Aubrey Ebbs, Executive Vice President, FirstBank
                    • Makey Towne, Vice President, Moody Insurance

                    WEBINAR VIDEO:

                    WEBINAR FAQ:

                    Here are some notable excerpts from the panel discussion, moderated by Managing Broker Andy Cullen. Please note: Responses have been paraphrased for brevity. Please reference time stamps for more information in the video.

                    Click here to download FAQ.

                    How are office tenants navigating this crisis right now?

                    Time stamp: 2:40 (Amy Aldridge, Tributary Real Estate)

                    There’s no doubt that retail is being hit the hardest. However, there are many industries that will be affected by this at some point. Right now, we are advising clients in traditional office settings to assess their current financial situation and negotiate with their landlords if there is a need for any type of rent relief. We are currently helping clients make sure they have all necessary documentation.

                    Are rental rates changing due to COVID-19?

                    We are not seeing any immediate rent compression right now. As we’ve learned from historical downturns in 2001 and 2008, there is a lag time before we see an impact on rental rates.

                    What are my legal options regarding my office lease?

                    Time stamp: 7:48 (Jeff Miller, Attorney, Husch Blackwell)

                    There are not many legal options under leases that allow tenants to stop paying rent because of COVID-19, including force majeure (which refers to “Acts of God” and is often included for the benefit of landlords). Most leases count on business interruption insurance to help cover these types of events.

                    Any rights you have are set forth in your lease. Read it carefully and send it to a broker or attorney to determine if there are any clauses or provisions that might cover this type of event. Those may include:

                    • Force majeure clause
                    • Major tenant provision
                    • Continuance use provision

                    Reach out to your landlord as soon as possible to discuss your options. Try to create a dialogue and specifically discuss the “Go Dark” provision, if applicable, that addresses potential defaults in the lease if you are not using your office space for a period of time.

                    What are future considerations for leases?

                    Going forward, lease agreements will include more information regarding situations like this, but it’s too soon to know what exactly that will be.

                    Will my business insurance help during COVID-19?

                    Time stamp: 14:50 (Makey Towne, Vice President, Moody Insurance)

                    On a case-by-case basis, each company should look at their policy terms with an insurance agent and evaluate if they should move forward with a claim or not. It will potentially take a lot of time to work its way through the system.

                    Regarding COVID-19, here are five policy forms to look for:

                    • Covered cause of loss
                    • Business interruption
                    • Extra expense
                    • Civil authority
                    • Contagious disease exclusion

                    How should tenants work with their landlords during this time?

                    Time stamp: 23:39 (Sarajane Goodfellow, Market Leader, Unico Properties)

                    The majority of landlords have a large amount of empathy. The most important thing tenants can do is to be proactive and open lines of communications with their landlords in a collaborative approach. Taking a hard-ball approach is not productive.

                    Approach your landlord before they approach you for rent. If you can pay your rent, then do it. Just as you have rent payments, landlords have loan covenants they need to uphold. It’s important for both sides to have grace with each other. Before going to your landlord, put together a business package that includes:

                    • Current financials
                    • Previous two years of financials
                    • Projections on how COVID-19 will impact your business
                    • How you’re using additional financial relief efforts under the CARES Act and Paycheck Protection Program

                    What are you doing as a lender to work with landlords and tenants on mortgages and the new Paycheck Protection Program?

                    Time stamp: 32:00 (Aubrey Ebbs, Executive Vice President, FirstBank)

                    Regulators have given banks a lot of flexibility to work with companies right now. Different banks are doing different things. FirstBank is generally deferring up to 3 months of payments on certain loans, assessing each request on a case-by-case basis.

                    The Paycheck Protection Program (PPP) is an SBA loan that is fully forgivable as long as that money goes toward payroll or other business expenses, which can include rent, mortgage interest and utilities. Please note that at least 75% of it has to be used to keep your employees paid.

                    While the rollout of PPP has been challenging, it continues to move forward. So far, the SBA has processed $70 billion through this program. To put that into perspective, in 2019 the SBA processed $32 billion.

                    For tenants who have lower payroll and higher expenses, the Economic Injury Disaster Loan might make more sense, and that’s administered directly through the SBA.

                    How long is it taking to process PPP loans?

                    While each bank is different, FirstBank is trying to get applications through and approved within 72 hours. New SBA guidance is requiring banks to fund those loans within 10 calendar days of approval, which is subject to change.

                    What will commercial real estate look like over the next 1-2 years?

                    Time stamp: 38:50 (Sarajane Goodfellow and Amy Aldridge)

                    We’re in a period of disruption, and office space is going to be forever changed. Space needs will evolve, especially now that we have figured out how to work from home. With social distancing, we might see the need for a little more space in the office for people.

                    Both tenants and landlords will change how they evaluate real estate needs, including lease terms as well as how buildings are designed and operated from a health and sustainability perspective.

                    Video + FAQ: Navigating Your Office Lease During COVID-192020-04-14T20:42:24+00:00

                      Coronavirus (COVID-19): How to Navigate Your Office Lease

                      Millions of businesses around the country are trying to settle into a new normal for their workplace routine. For office tenants, this means a huge shift towards working from home for the majority, if not all, of their employees to help stop the spread of COVID-19.

                      As you continue to navigate this new virtual reality as a business leader, there are thousands of questions running through your mind: Will we make it through this? Are my employees OK? What does this mean for productivity? How will this impact my team’s culture? How do I continue to motivate? What are our opportunities for business growth?

                      And one more big question: What do I do with my office lease during the coronavirus (COVID-19) outbreak?

                      As more companies are asking their employees to work from home (or as they are required to do so in some major metropolitan areas), their office spaces are emptying out. With real estate being one of the top expenses for your company, what are your options?

                      While there are very limited legal options you can exercise during this time, there is an opportunity to be proactive and limit your financial exposure.

                      Now is the time to negotiate rent reductions and abatement with your landlord.

                      There’s enough on your plate right now. Let a trusted broker help guide you through this process:

                      1. Assess your current situation. How you approach this conversation with your landlord will depend on your current status in light of the evolving COVID-19 situation. It’s important to look at how your company is responding and adapting now, as well as what your needs will be in the coming three, six or nine months. Be prepared to show the economic impact that this situation has had or is projected to have on your business, as well as any additional measures you’ve taken to mitigate your financial risk.
                      2. Read your lease agreement. Unfortunately, there is most likely no protection for this type of scenario included in your lease agreement, even if there is force majeure language. If you have an attorney, have them review and provide insight into your legal options (which, per our current understanding, are extremely limited).
                      3. Name your best-case scenario. While this is a new situation for everyone, decide what your best-case scenario would be for your company in terms of your office lease. Then, work with a trusted broker to help craft what those terms would be to present a clear, concise proposal to your landlord.
                      4. Negotiate with your landlord. Landlords are particularly busy during this time making sure their buildings are safe for their tenants and trying to figure out the ripple effect of the coronavirus (COVID-19) on their properties. Some landlords may be willing to work with their tenants, while others may not. Using brokers who have a strong relationship with multiple landlords will help you find the best solution.

                      This is a first for all of us, and we want to do what we can to support you during this very fluid situation. Please let us know what we can do to help.

                      Andy Cullen
                      andy@tributaryre.com
                      720-933-9411

                      Amy Aldridge
                      amy@tributaryre.com
                      720-217-7340

                      Coronavirus (COVID-19): How to Navigate Your Office Lease2020-03-24T19:46:54+00:00
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