Vacancies hurt. They cut into operating costs to maintain. Meanwhile, you're spending on market listings to attract prospective tenants – all without a lease revenue stream. According to JLL Research's U.S. Office Outlook, total vacancy increased for the third consecutive quarter in almost all asset classes.
To save money, cost-conscious tenants are are looking toward older buildings that have been remodeled with tenant improvements in mind. It’s no wonder, then, that renovations to older buildings are on the rise. New generations of tenants prefer modern workspaces with minimal costs, with an emphasis on sustainability and cutting edge technology.