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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (10775)	12/28/2020 6:50:50 PM
From: robert b furman	1 Recommendation Recommended By Lee Lichterman III Read Replies (1) \| Respond to of 26788

I see the biggest and first negative to impact urban office space. Working from home, however it settles out in the longer term will detract from urban office space. The pandemic has let the genie out of the bottle. I do not think it will completely go back in. My brother in law runs a large legal office in down town Chicago. Both attorneys and assistants like working from home in a large metropolitan urban environment Cost of parking, gas, wear and tear on personal vehicles, plus the most important variable time to commute have been embraced by those who now are working at home. My BIL thinks he needs 25 % less office space and is levering his 6 year buy out clause (coming in two years) in a 13 year lease. He says there are many buildings that will help pay the buy out to make the move. He moved the entire office 4 years ago and the office space he left, has yet to be leased. His newer building he currently occupies is 85 % occupied. Many firms moving out will cause an precipitous drop in lease rates. I'm thinking it is an over capacity of office space, situation focused in Metropolitan urban areas in particular. We'll see. Bob