The Changing Needs of Office Space Occupiers Post-Pandemic
When we use the term ‘Post-Covid’ or 'Post-Pandemic', we refer to the emergence of the pandemic rather than the end, unfortunately.
At the time of publishing these pages, the UK is in its 3rd national lockdown.
What we have already learned from this pandemic is that Black Swans cannot be predicted. Much like the Great Recession of 07/08.
What the events of the previous Black Swan resulted in was an increase in the need for flexibility in office occupational agreements and, from 2010 to 2020, there was a growing trend in companies moving away from traditional leasehold office space towards flexible workspace.
Flexible workspace provided agile office space that allowed a company to upscale or downscale in reaction to external and internal economic conditions and to not be tied down to onerous obligations or long lease terms.
The all-inclusive nature of the agreements proved to be more favourable to many businesses and the shorter-term nature of the licences, for some, proved to be more efficient following new accounting protocols established by the International Financial Reporting Standard 16 (IFRS 16) in 2019.
The pandemic lockdowns meant that companies could not use their offices and were forced to utilise homeworking staff.
Due to cloud-based technology and high-speed domestic broadband, many companies could continue to operate efficiently.
As businesses look forward, it is likely that flexible working practices will be more fully integrated into operational models, and businesses will continue to re-evaluate how they use their office space.
It is unlikely that companies will move to 100% remote working models, however, but there is already evidence that businesses are looking to create Hybrid Working models that incorporate a mix of workplaces including the home, workspaces near home and a newly-configured headquarter office. Also referred to as the 'Hub and Spoke' model.
Organisations that have already announced that will be utilising Hybrid Workplace Models post-pandemic include Apple, Facebook, Google, J.P. Morgan, Microsoft, Twitter and Unilever.
In response to the pandemic, the providers and operators of flex spaces have already taken various measures to ensure that their business centres are Covid-compliant.
Some of these measures include:
- Installation of protective screens at business centre receptions
- Setting up of thermal imaging cameras for body temperature monitoring
- Fitting of hand sanitation stations
- Installing social distancing signage throughout
- Implementing highly-frequent cleaning cycles
- Adopting deep cleaning and fogging protocols
- Creating partitions, pods and cubicles in co-working spaces and shared offices
- Limiting the number of lift passengers per journey
- Reducing occupier densities
- Creating greater fresh air circulation
- Regularly disinfecting air conditioning systems
- Introducing full and ongoing training of staff
As well as this, office space companies have created Zoom Rooms, podcast studios, virtual presentation suites and other facilities to aid homeworking staff for occasional tasks that cannot be carried out at home.
Flex space companies have also further enhanced the portfolio of products that they provide to include:
- Introducing workspace timeshare agreements
- Initiating day office rental and part-time office products
- Creating a range of pay-as-you-go office and workspace options
- Including ‘Freeze-Clauses’ in agreements meaning that no fees are paid during lockdown periods
We are monitoring the changing demands of occupiers and the reactions of providers to these demands.
This is an ongoing process and will be discussed in our webinars.