Office Owners Consider More Expensive Upgrades As Slow Return To Work Continues

The return to the workplace has been slower than many office owners expected, leading them to consider costlier measures to make employees feel comfortable entering their buildings. 

In the early days of the reopening process, owners implemented quick solutions, such as hand sanitizing stations and social distancing signage, but the number of employees coming back to the office has remained lower than many expected.

As owners look for ways to make employees more comfortable entering buildings, and as it becomes more evident that the pandemic will have long-lasting effects on everyday life, market experts say owners are beginning to look at more substantial investments in upgrading their buildings. 

MRP Realty Director of Property Management Allison DiGiovanni said the return to work has been slow, with buildings still around 10% to 15% capacity, so it is important for landlords to show tenants they are making buildings safer.

"You've got to feel like where you're coming to work is up to speed and taking every precaution they can," DiGiovanni said. "If you have a landlord that is engaged and encouraging, then the tenants in the building will feel safe and the building will be safer."

The measures now under consideration include HVAC upgrades, temperature checking stations, operable windows and lobby storage lockers, experts said. 

While these upgrades may help tenants feel safer about coming to work during a pandemic, they can be much more expensive than the minor changes owners have already made. Upgrading an HVAC system, for example, could cost a building hundreds of thousands of dollars upfront, and the air filtration changes could also increase a building's utility bills by more than $100K annually. 

During an economic recession when rental income may be less stable, the cost of these measures is leading owners to take their time in making decisions.