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Impacts of Long-Term Virtual Work

When people switch to working from home, which momentarily can boost the quantity of work they accomplish each day, work-from-home (WFH) employment cannot provide the real benefits of face-to-face interaction, such as learning and new long-term connections. The benefits of in-person work on productivity are better long-term as opposed to the short-term gains from working more at home for potentially unsustainable periods. In-person work stimulates invention. The one-time benefit from the time saved on commutes will be swiftly outpaced by an even slightly greater growth rate once workers return to their offices.

 

Members of the Team have Less Human Interaction.

Not everyone wants to be “besties” with their colleagues and treat their work for work only; however, according to Business Insider interaction helps in providing a productive and enjoyable environment. It’s also a social setting in which employees get to know one another, have casual chats, bounce ideas off one another, connect as a team, and come to appreciate the business culture. Even when you are no longer obligated to attend the monthly standup meeting physically, you might not know how much you’ll miss those free workplace coffees. 

Low Employee Morale

Building relationships with coworkers is more difficult while working from home. There are fewer chances for chance meetings or social gatherings like lunches, and happy hours. 

Inability to Focus

While some professionals find the home environment conducive to concentration and productivity, others are overwhelmed with distractions: children wanting attention, spouses, and roommates interfering, and street sounds boring into the awareness.

Overworking Dangers 

The possibility of working more hours than necessary exists when you telecommute. Burnout and increased work-related stress are unquestionably consequences of this. This may be prevented by carefully outlining your calendar and allotting certain work and personal responsibilities periods. For some people, having a designated workspace where you can leave when the workday is done is essential.



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General Liability and Content Insurance When Leasing Office Space

Closeup of a man's hand signing a document.

Landlords do maintain building insurance but will require Tenants who are leasing office space to have General Liability and Content Insurance with a particular dollar amount of coverage in a policy including but not limited to an umbrella and per occurrence. Even just across the Tampa Bay office space market, Landlords can require a vehicle [whether the company owns the vehicles or not] and fire insurance, let’s focus on the most common which is General Liability and Content Insurance. 

 

What Is the Definition of General Liability Insurance? 

  • General liability insurance can assist cover medical bills and attorney fees incurred as a consequence of physical injuries and property damage for which your firm may be held legally liable. In most cases, General Liability Insurance plans will protect both you and your business from claims involving personal harm and property damage originating from your activities, services, or goods. It may also protect you if you are held accountable for your landlord’s property damage.

 

  • By paying for legal fees, financial losses, or settlements up to the policy’s maximum for covered claims, general liability insurance protects the assets of your company. Despite your best efforts, accidents might nevertheless occur in the course of business. For example, a client stumbles on a damp floor and is wounded. Your product fails and causes harm to a customer’s property. Your commercial is allegedly violating the copyright of a rival. These are just a few of the mishaps that might lead to claims and lawsuits against your company. 

 

General Liability Policies often include: 

  • Premises liability insurance protects you against the costs of injuries that occur on your company’s premises.  
  • Product liability insurance protects you from the consequences of property damage and personal injury.
  • Injury brought on by your services or products to individuals. 
  • Coverage for personal and advertising harm liability provides a defense against the costs associated with problems that result from your work, such as defamation, libel, unlawful eviction, copyright infringement, and more.

 

What Is Content Insurance?

Business contents insurance allows organizations to replace or repair their items if they are destroyed. However, most insurance plans refer to it as personal property coverage. If your personal things are stolen or destroyed by a covered risk, such as a fire, contents insurance can help pay to replace or restore them. Office contents and equipment insurance is essential for every business, protecting computers, laptops, or more advanced gear, papers, and cash which content insurance covers.

During the negotiation process of your lease, you will want to send the insurance requirements you receive from your Landlord to your insurance agent who can provide the necessary Certificate of Insurance or COI. COI’s are required to be submitted to the Landlord prior to a Tenant’s occupancy.



Chelsea Drinkard No Comments

Company Culture is Not Built Virtually

Company culture is not built virtually

I believe there will be long-term impacts on company culture, especially for the younger generation moving into the workforce. The newer generations are now becoming the majority in the workplace. Even if it has been some time, can you still recall running into coworkers in the corridor and catching up with them about weekend plans or a significant project you were working on? Do you have any memories of being in the right location at the right moment, providing a person with the knowledge they were lacking, or inviting a colleague to a lunch meeting or event they could benefit from? Like many others, you might not have appreciated the significance of these discussions until you started working from home. Over 50 studies have been conducted this year by Microsoft teams to investigate how the nature of work has evolved since early 2020. This endeavor includes a study of billions of productivity signals such as emails, meetings, chats, and postings across Microsoft and LinkedIn’s user bases. Additionally, a poll of over 30,000 persons who were located in 31 different nations is included. Basically,  this study found that employees feel more connected to their colleagues in the office and completely disconnected when working virtually. 

 

  • Difficulty in Building Genuine Relationships with Colleagues

Collaboration, creative problem-solving, mentorship, and team morale is more challenging when each requires a Microsoft Teams or Zoom invite to do so. According to a study done by Stanford 67% of workers are distracted during virtual meetings. · 47% of people prefer in-person meetings.

 

  • Frequent Interruptions and Unsupervised Performance 

Self-regulation and focus can be difficult for most without having the accountability of your team around you like in an office. 55% of workers admit to checking their email during virtual meetings according to a study done by Standford. 

 

  • Lack of Motivation When There’s No Comradery

When you are surrounded by people who share the same vision and purpose it is the comradery that keeps each of us motivated and feeling supported when you are having an off day or dealing with a difficult project/situation.

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Your Workplace is a Reflection of the Company Culture

 

 

According to Business news daily when searching for a new job, 77% of respondents said they would consider a company’s culture before applying. Corporate culture is a serious issue. According to Deloitte research, many business executives surveyed saw staff retention and corporate culture as an “urgent” issue. Given that business culture has a direct bearing on employee retention, particularly among the millennial age and younger, it stands to reason that it also has a direct bearing on the number of employees who stay with a firm.

Your workplace is a reflection of the company culture. Whether actively developed or just developed through time, every business and workplace has a culture. Cultures can be positive, feel positive, and act positively. Or they might be awful, feel bad, or behave badly. And there is a middle ground between the two. A great corporate culture is one that is shared by all employees, from the newest intern to the CEO. Culture involves putting your underlying principles into action. The business’s responsibility is to guarantee that each employee is aware of the requirements and aligns properly. A company’s culture should be one that naturally fosters inquiry, respect, cooperation, and employee wellness. In most circumstances, deciding whether something is “excellent” or “poor” is a matter of personal preference. If you want a relaxed atmosphere, a fast-paced, competitive culture will not suit you. Conversely, there is no doubt that each culture is unique, even if it makes sense for that particular industry. One of the main characteristics one company differs from another in the same sector is through culture.

The quality of an employee’s work life will be greatly influenced by the setting in which they spend that time. People are more willing to put in long hours and stick with a company for the long term if they work for one with a strong culture that matches their personal values and mission. People are considerably more inclined to quit, or even worse, underachieve while still working for the organization if the culture does not match their own personal feelings.



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3rd Quarter 2022 Market Report

Important Highlights:

Tampa Bay:

  • Hillsborough and Pinellas Counties’ unemployment rate of 2.7% is drastically lower than the nation’s rate of 3.5%. 
  • The population of the city has grown by 1.1% year-over-year.
  • Tampa has been named one of the best places in the United States to live, according to a new ranking released by the finance brand Money.

Office Market:

  • Supply: The total vacancy rate in Tampa increased to 19.4% in the third quarter of 2022 due to 1 of Hillsborough Counties largest Tenants deciding to sublease their 556,000 SF office space. The sublease vacancy increased to 4.9%, a 40% increase from the second quarter of the year and the highest since 2002. 
  • Demand: Increase in vacant space however, the demand has continued to rise with Approx. 10% up in leasing activity year-to-date. 
  • Current Tenant Trend: There is a trend of “flight to quality” with companies being attracted to Class A and trophy buildings that are highly amenitized with cafes, Tenant lounges and collaboration areas, gyms, and focus on enhanced air quality.                                                                       

Let’s Talk Rent Numbers:

Submarket Overall Average Asking Rent-All Classes Overall Asking Rent Class A
Westshore $28.84 Sq. Ft.  $36.77 Sq. Ft.
Downtown Tampa $28.00 Sq. Ft. $38.04 Sq. Ft.
Northwest Tampa $23.16 Sq. Ft. $29.21 Sq. Ft.
South Tampa $29.93 Sq. Ft. N/A
I-75 Corridor $25.82 Sq. Ft. $28.53 Sq. Ft.
Downtown St. Petersburg $27.19 Sq. Ft. $38.04 Sq. Ft.

 

 Building Highlights: 

  • The most significant recent transaction may have been the sale of the recently delivered, two-building Heights Union property to Atlanta-based Cousins Properties. The two properties that TPA Group sold, totaling 294,000 SF, sold for $144.8 million, or a cap rate of 3.2%. The buildings were 93% occupied when they were ultimately constructed in late 2020, with businesses in the life sciences sector like Pfizer and Axogen occupying over 70% of the leased space.

 

2022 4th Quarter Forecast:

  • Companies will continue bringing employees back into the office with increased frequency. Those who are maintaining a flex schedule may find it beneficial to schedule to be based on employees who work in teams or departments to maintain synergy, comradery, and creative collisions. 
  • If a company has delayed their office related to the last minute, they will find themself at a disadvantage with limited options and in a position of inferiority when negotiating 
  • Office vacancy rates will slightly uptick but Tampa Bay will continue to experience companies in the tech industry and cyber security relocate to Tampa Bay and/or require a larger office footprint

What does this mean for Tenants?

  • Decide what is best for the long-term health of your team and company. What do mentorship, professional development, and opportunities for younger employees look like if work was 100% remote? Is it a remote, in the office, or a hybrid? Testing a hybrid [mix between working from home and in the office] can be a compromise. 
  • Although Landlords are more willing to provide rent abatement and Tenant Improvement allowance, the vacancy rates are not similar to those in other big US areas, and not experiencing the same “pain”. 
  • High construction costs mean a more expensive build-out. Landlords will require longer,  7-10 + year leases to recoup those costs. 
  • Annual increases have typically been 3% on annual basis but some Landlords are beginning to increase to 4% and above.

 

What does this mean for Landlords?

  • Construction costs remain high and will have to increase Tenant Improvement allowances to deliver basic building standard finishes and significantly for upgraded finishes to win deals.
  • Having turn-key spec office suites that are ready for Tenants who have quick deadlines due to holding off their office move, will have an advantage in winning new Tenants.
  • Inflation will continue to be a factor and will impact profit margins.