Over the past two years, the real estate sector has been disrupted by a host of frontpage events, including the COVID-19 pandemic, natural disasters and civil unrest, just to name a few. These events have forced many commercial office owners and tenants to confront a question many had not expected to answer so soon: Where will the workers of the future carry out their business?

While prior to the COVID-19 pandemic, many workers, in particular, millennial workers, were already beginning to take advantage of more flexible, remote and hybrid work environments, the notion of a flexible work environment was certainly not the majority model nor a concept most office owners or users had at the forefront of their business models. However, after weathering nearly two and a half years of pandemic life, it is safe to say that recent events have propelled those trends forward and solidified them as the current (and potentially long-lasting) dominant workplace models.

However, as commercial office owners and users pivot out of triage mode and begin to plan for the future, we can look back at our collective experiences from the last few years and determine how commercial office space needs should be conceptualized in the years to come. 

To help guide you, as tenants and employees begin to re-enter the workplace, we have highlighted a few key lease provisions that may take on new importance in your future lease negotiations:

Many events over the past few years have forced the adoption of new ways of working — and in turn, landlords and tenants are reimagining the office environment, and re-thinking lease negotiations. As a result, permitted use, risk of casualty, insurance considerations, and assignment and subletting will be a focus of lease negotiations. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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