We’re now almost 10 months into the COVID-19 pandemic and based on recent updates, it would seem not much will be changing anytime soon. We’ve seen the effects that the pandemic has had on our economy for both essential and non-essential businesses but as time continues to pass the question of what happens to office jobs has continued to grow. Brain Sozzi of Yahoo Finance predicts “The cost of doing business post-pandemic is going to go up, perhaps in a big way.”
Across the country, thousands of previously packed office buildings are now sitting empty. What were once high ticket sites of professional businesses are now barren ghost towns. What does this situation mean for the landlords dependent on monthly rent checks from businesses? And furthermore, what might it mean for the real estate industry if businesses start to assess the option of vacating offices?
On top of the usual costs to maintain an office space (rent, utilities, maintenance, etc.), COVID brings along additional financial requirements. In order for businesses to safely return to the office, management must consider cleaning protocols and social distance requirements, not to mention the financial risks if an employee were to contract COVID.
While some businesses have the luxury of allowing their employees to safely work from home, not all industries can function remotely. Because of this, businesses are being forced to evaluate their options and decide what steps to take going forward.
It’s safe to say that offices as we used to know them will hardly be returning in the foreseeable future. Managers must make the decision of whether or not the financial commitment to reopen is worth it. It’s crucial to weigh the pros and cons of whether your business will continue to function appropriately outside of the office and whether the investment to reopen is worth it.
The initial steps to reopen an office will likely require upfront office investments including plexiglass shields, larger allocated square footage per employee, and in some cases, an updated HVAC system to efficiently filter the air in confined spaces. With the recent financial challenges placed on many businesses, these investments are a daunting consideration for business owners.
If your business is struggling with the financial demands of maintaining an office space during these unprecedented times, Innovative Capital may be just the resource to help support you. A private loan could be the difference between being able to bring your business back to life in person. Avoid drawn-out negotiations with the banks and let us help you get what you need to move forward.