3 ways office life is about to change in the future


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In the past 2 years 2020 and 2021, it can be said that the time when the remote working model is on the rise, the demand for physical office space around the world has decreased significantly, in the UK in 2020 it decreased by 50% as many businesses realized the value of flexibility after the global pandemic COVID-19 swept through. This has impacted the change of the future of types of office work as we know.

With 60% of the UK workforce working from home during the height of the government lockdown and millions of businesses struggling to cover costs, office spaces across the country have been left vacant and office lease negotiations have stalled.

With a vacancy rate of 4.5%, the UK's unused commercial office space is now nearly 50 times larger than London's O2 Arena.

Despite this, industry experts remain optimistic that the commercial real estate market can recover by adapting to emerging trends around how we use office space. For businesses, this shift could lead to improvements in productivity, wellbeing and sustainability.

Instant Group, said “COVID-19 has shown the world that we can cope with rapid changes to the way we all work, and as more businesses embrace flexibility, we will see a lasting change in how an office can meet individual needs.”

3 ways office life is about to change in the future

A senior CRE consultant at a global pharmaceutical company told The Instant Group that while temporary office space may be unnecessary, businesses still need a common space to create a sense of purpose. With the future of work becoming a hybrid of central offices, flexible locations, and remote working, here are three changes we can expect to see in the near future.

1. Half the workforce will likely work remotely

Whether they were ready for it or not, COVID-19 has forced business leaders and employees to embrace remote work, with many unforeseen benefits. To manage costs, more than 70% leaders are planning to transition a portion of their on-site workforce to remote roles post-COVID.

In a report for The Instant Group, CRE adviser Simon Johnson predicts that on the other side of the lockdown, regular remote working could become the norm for up to 50% of the UK workforce in the long term, reducing the need for a central office space. Instead, we will see more people work from home more or more flexible office space.

This will have a significant impact on business footprint requirements, but for companies to transition smoothly, significant planning is needed to manage the change from an organisational and policy perspective.

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2. Demand for flexible office space to outstrip supply

Long-term leased commercial real estate still dominates the global market, with flexible spaces such as co-working or serviced offices accounting for just 6% of the total market share – but this will change as the flexible trend grows. Post-COVID, Instant predicts that many companies will be unwilling to take on the cost of long-term leases or the level of risk that comes with them.

With more and more businesses opting for flexible solutions, the UK could see an imbalance in supply and demand that could have a significant impact on the market unless traditional office providers adapt their offerings.

Flexible office providers have responded to emerging trends. According to data from experts, more than 60% providers are offering discounts or holiday rentals to existing customers, while commercial spaces are attracting new business with virtual tours, free rent periods and discounts from 16% – 20%, allowing companies to sign up now at a reduced rate, to secure space at a later date.

3. Integrating technology will monitor employee happiness

In addition to spaced-out desks, modified air conditioning systems and intensive cleaning procedures, technology and wellness will be more integrated into offices around the world. Some buildings have installed monitoring systems to encourage employees to start returning to the office.

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Office life could soon include daily online health checks, scheduled arrival times to avoid congestion, and limited meetings and in-person interactions. AI and motion sensors could raise alarms if social distancing guidelines are not followed, while thermal cameras will be used to take employees' temperatures upon arrival.

As businesses prepare to return to work and commercial real estate leaders roll out plans to re-enter different physical spaces, it is more important than ever for landlords and tenants to work more closely together.