Office Workspaces Post-Pandemic

When the Covid-19 pandemic hit in early 2020, many people's working lives changed overnight. Working from home was introduced permanently, a notable change to the norm; for most companies working from home before the pandemic was relatively rare. The pandemic forced businesses to change and evolve overnight, and now many businesses utilise remote working daily.

Post-pandemic, there was much debate in the property litigation market as to whether this change would permanently alter the business tenancy landscape, with businesses seeking to capitalise on the reduced outgoings that remote working could facilitate.

Not only does the space have to work flexibly, but the lease term also has to be able to adapt to the business, with companies looking to "future-proof" their occupation. We have noticed that tenants often seek to move from a fixed long-term lease to a more flexible or short-term one. Some tenants may seek to sub-let part of their space, giving them the option to take back that space if the needs of the business change.

If you are looking to adapt your office space, then there are several options available to you:

• Speak to your landlord to see if they would be willing to market part of your demise – with a view to you surrendering part if a new tenant is found.
• Discuss options regarding surrendering the whole of your demise and downsizing to alternative accommodation.
• Check your lease to see if you have the benefit of a break option allowing you to terminate the existing lease and relocate.
• Consider assigning the lease or sub-letting part of your premises (subject to your landlord's consent).
• When negotiating a new lease, request a rolling tenant break option to allow you flexibility during the term of the lease. The landlord will likely require a higher rent in these circumstances, but that may be worth paying in return for flexibility.