Legal Updates Clark Hill 2025 Commercial Real Estate Outlook: Hybrid Work Models and Lease Restructuring
Although the COVID-19 pandemic has ebbed from the daily lives of workers, its impact on hybrid work continues. While no consensus has emerged, the hybrid work model, which requires splitting the work week between going into the office and working from home, has grown in popularity. The ongoing impact of remote and hybrid work arrangements has undoubtedly influenced not only office space demand, but also several legal considerations in commercial leases. These legal considerations for commercial real estate include the balance between a tenant’s need for flexibility with a landlord’s obligations to its lender as well as changes in the costs of an office building and how they are best allocated.
