The workplace, is undergoing significant change after the pandemic. The workplace dynamic is shifting and there are unprecedented changes in how we interact and collaborate. Teams are working remotely and flexible working is far more common than ever before. With companies bouncing back from the effects of the pandemic, there are many questions surrounding the changes that have occurred and the benefits and drawbacks on the office environment. This also raises questions around future workplaces for the offices and their landlords.

What has Changed? What are the Benefits?

Remote Work

The widespread acceptance of remote work is one of the most significant shifts in the post-pandemic workplace. Having been forced to adapt to it during lockdown, companies are realising the benefits and feasibility of this arrangement. As a result of this, remote work is now a permanent fixture for many organisations, improving the flexibility and work-life balance offered to employees, who in turn, are also more committed, engaged and productive. Companies are now investing in improving digital skill set and infrastructure as well as collaboration tools to support remote teams.

Hybrid Work

Although not all companies have adapted their work culture to be fully remote, many have incorporated hybrid working, often allowing employees to choose the days they come into the office. Hybrid work models, combining remote and in-office work, are becoming increasingly popular as companies seek to balance the advantages of remote work and face-to-face interaction. This style of work does require strong communication and clear expectations to maintain productivity and efficiency. The likely resultant impact on the workplace will be significant.

What is the Impact on Office Space and Real Estate?

Reduced Demand?

As more companies opt for hybrid/remote work models, there comes a potential for reduced office space demand. This has led to many companies downsizing and moving to smaller workspaces, or introducing hot-desking or co-working spaces. This, in turn, has the potential to increase collaboration. Some companies have started to place more importance on creating an environment that boosts collaboration and focuses on the mental well-being of their employees within the workplace. Many employers are also boosting employee benefits to incentivise in-office work. What will the impact on this be? Anecdotally, we see more owners looking to adjust spaces, improve and enhance, and make space more flexible to attract tenants.

Current Refurbishments

To improve office spaces and encourage collaboration, companies are looking for spaces that are more sustainable, adaptable, modern and open plan as opposed to the more traditional cellular layout. An example of this is a local project at Pilgrim St (The Carter). This project underwent a refurbishment where new amenities such as roof-top terraces and green spaces replaced the current roof plant areas. Further changes such as enhanced employee areas, showers, locker rooms and new cycle parking facilities are also in the works, improving the overall employee experience and sustainable credentials of the space.

A similar example of the type of flexible workspaces that are now in demand is this design and build project in London. The approach has transformed the office into a space designed around the needs of its inhabitants, from considerations of the way the sun interacts with the space, to predicting the footfall levels throughout the day. Some spaces included in the project are focus rooms for collaborative use and solo work as well as new spaces for legal teams.

Landlords

These changes may potentially pressure landlords to adapt and find a niche to meet new expectations. Some commentators have suggesting looking to prioritise the quality of office space, enhancing technology, supplying short-term leases. They also recommend fitting spaces with other amenities to meet the updated needs of a workspace post-pandemic. Flexible office spaces are set to account for 30% of portfolios by 2030 according to surveys. Should landlords therefore  be focusing on creating quality flexible workspaces to meet demand?

Still Evolving

Despite the widespread change to the office environment post-COVID-19 lockdowns, the workforce is slowly returning to the office. The new structure of the workplace with flexible working and more importance on employee well-being, has increased collaboration and work-life balance and this is anticipated to continue as workplace structures evolve. Although the demand for traditional workspaces may fluctuate, many companies remain in office and demands are evolving for companies and landlords.

Get in touch today to find out how we can assist with your workplace projects and needs.