TO BE OR NOT TO BE……..IN THE OFFICE
As some organisations set their sights on returning to the
office, David Davidson, International Partner, Capital Markets and
Chair of Scotland at Cushman & Wakefield, specialists in global
commercial real estate, highlights his experience of the decisions
business leaders are facing regarding office space.
Many organisations see return to the office as an essential step
on the road to recovery from the pandemic. Whilst working from home
has worked well for some individuals, it favours those with larger
properties with the ability to separate "work life" from "home
life". Many individuals haven't had that luxury and have had to
work in living areas or kitchen space and juggle their work with
constant interruptions from other family members - particularly
children.
Businesses too have missed the benefits of collaboration and
creativity that comes from face-to-face interaction. There is also
a top-down concern about the productivity of those working at home
(out of sight is out of mind) and a bottom up worry that young or
new members of a business cannot learn enough taking part in
endless Teams meetings. Listening to more experienced colleagues on
the phone and interacting with others in the office is an essential
part of the learning on the job.
Initially organisations saw the pandemic as a fast track to
reducing costs and the amount of office space needed. However now
we are seeing the floorspace that organisations say they need
increasing from 12 months ago as business leaders see the office as
an important factor in bringing their teams together, improving
productivity and increasing face to face interaction with clients
and customers.
We are still in the middle of this journey on the role of office
space but businesses with lease expiries or break options on older
or outdated offices are looking now at the chance to upgrade and
create attractive offices environments that their staff will
hopefully prefer to homeworking.
The other factor driving these recent deals and others in the
pipeline is the dramatic increase in focus on environmental
performance of buildings. Businesses are keen to show their serious
commitment to energy saving and carbon performance for their
shareholders, their staff and for their customers. Many older
generation offices cannot be improved so moving is the best option
- even if business really do not know how much space they will need
in the next two to five years.
Without doubt there is no one answer fits all and it will
continue to be a challenge for decision makers over the winter
months.
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