In this episode, I discuss strategies for managing commercial real estate costs with Adam Schindler, Vice Chair at Colliers International. Adam is a top leasing agent for Colliers, exclusively representing tenants.
It is an interesting time to discuss commercial real estate as the industry is still emerging from the devastating impact of the pandemic. It’s also unclear to what extent employers will require their employees to return to the office, but the trend suggests that working remotely is increasingly falling out of favor. Regardless, I’m confident that commercial real estate will continue to be a significant cost for most companies.
What makes real estate a particularly difficult cost to manage is that it requires some level of accuracy when forecasting long-term headcount and office utilization, as leases of premium space often require a commitment of a decade or more. A company can easily find itself facing the cost impact of either too much or too little real estate, neither of which is an easy problem to solve.
Adam and I explore how companies can best manage their commercial real estate by finding the right balance between creating a dynamic work environment and avoiding the risks associated with having an excess—or insufficient—amount of space.
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