The Right Office: Lenders' Holy Grail

Despite challenges in the office sector since the COVID-19 pandemic, lenders are cautiously willing to finance well-located, well-leased buildings with strong tenant appeal. Partner Alain R'bibo emphasized that companies are realizing the hidden costs of remote work, particularly in terms of employee turnover and team efficiency. He noted that working together in an office can enhance collaboration and productivity, making tenants reconsider downsizing decisions. R'bibo highlighted that while tenants may save on rent, the impact on team cohesion and productivity could lead to higher, harder-to-quantify costs. This shift in perspective underscores the importance of in-person work for many organizations, even as they balance costs and space needs.

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