As Hybrid Work Takes Hold, Office Real Estate Starts Competing Like Hotels

"" The fact that the genie is out of the bottle on hybrid means there's going to be a lot of structural changes in how landlords need to operate their business models," Garbarino told . "The whole industry is kind of predicated upon the 10-year-plus lease as the one product skew that they want. They're going to have to think and act a lot more like hotels.""

"The 10-year lease provides guaranteed long-term financial stability for landlords, handing them a predictable cash flow and minimized turnover costs. Yet that model, Garbarino says, has been upended by the rise of hybrid work because employers aren't committing to 10-year leases as much as they used to. He says landlords must win tenants back, guaranteeing luxuries and services that can keep them long-term."

Hybrid work has become the dominant mode for many U.S. workers, with 52% identifying as hybrid. Commercial real-estate dealmaking has slowed as employers commit to shorter lease terms. Traditional 10-year leases historically provided predictable cash flow and low turnover but are becoming less common. Average lease lengths vary by sector: financial services about 7.6 years, tech about 5.3 years, and AI startups about 3.5 years. Landlords will need to offer enhanced amenities, services, and flexible operating models to attract and retain tenants and adapt to the changing demand landscape.

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