On the rise of Home-working and Declining need for Office Space...
One of the legacies of Covid-19 has been the rise of more flexible working patterns, with a third of employers now saying that 3 out of 5 days in the office is now the new normal.
Overall the estimates show that on average companies now need 20% less office space compared to pre-pandemic when most employees were in five days a week.
To my mind these new flexible working patters are most definitely a benefit to workers, as long as they're mixed - I don't think 5 days a week working from home is good for anyone, but anywhere from a 2-3 to 4-1 split in the office home working I think is a nice balance.
The downside of this managing the transition at a social level: as companies look to downsize offices, and are increasingly picky about renting only quality office space (with rest-rooms/ gyms and other amenities) this means demand for office space is lower than it once was.
This is potentially bad news for anyone who has invested in commercial real estate, and unfortunately for most of us this means pensions funds, and it's also potentially bad news for local councils who rely on tax revenue from businesses renting out those offices.
I guess in the end the places that are going to be hit the most are those poorer inner city areas which offer the worst facilities - if companies are going to relocate they are likely to choose smaller but better equipped facilities elsewhere and with better services, which means the kind of areas they and other companies aren't leaving, and one might expect possible even some high demand areas to see increasing commercial prices.
Having said that I don't think a 20% reduction is that much of a shock for this to be catastrophic, it's the kind of thing that can be managed easily enough with some extra support from central government for the worst affected areas but mostly we can probably just leave the market to take its course.
It's a bit of pain, but overall I think it's a positive thing and improved quality of life for a good chunk of workers, once positive outcome of covid, maybe?!?
I wouldn't like working fully from office or home from now on. I like the hybrid model; however the best to me is choosing the days I go to office.
Most people do!
That is a good outcome of covid. I myself don't even have a desk anymore and when I last went into the office I didn't know anybody, even after being in the company 10 years.
That doesn't sound great!
I heard that there were some landlords pushing to end the lockdown as they were losing money where companies stopped leasing offices. Where I work the company owns the offices and seems to be able to afford them to be half empty. We are not using hot desks in my office, so the usage is sub-optimal. Otherwise they would need less equipment.
I think giving more people an option to work at least some days from home is great. Works can save a lot on travel for a start plus it improves the work/life balance.
Your company must be pretty minted, or maybe that's just the advantage of owning I guess! If they're comfortable, no need to move!
I assume they own the site as they have been there for decades. They just demolished an old block and built new offices there, but I'm based in an old building.
I don't think there is anyone who loves to go to work everyday
I am like that too
I have noticed the same pattern in Spain... People are selling commercial real estate and converting them into living spaces... Prices have dropped significantly and you can get sqm of commercial real estate for the half price (or even less) of home real estate...
Congratulations @revisesociology! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPI retired just before Covid hit and work from home started to boom. My last job was working at (but not for, I was a contractor) a major health insurance company with several hundred thousand employees, many of them in the Minneapolis area, with about a dozen office locations spread throughout the Twin Cities. Where I worked, three multi-story buildings connected by tunnels. Today, all three stand empty, with a For Sale sign out front. And the entire campus of their corporate headquarters is on the market too. I don’t know for sure, but it seems to me that the bulk of their large work force is now WFH.
My wife’s former employer went 95% WFH and also put their headquarters on the market. She now has a WFH job, for a company a thousand miles from us.
I would not want to be an investor in commercial real estate.
Wow that's an extreme case - but I guess the fact is insurance is a good case for WFH - I don't think most people like it, not 100%.
It's a good chance to get more people living in city centres again but yeah as an investor maybe not great!
The rise of home working and declining need for office space is a significant trend accelerated by the pandemic. It offers flexibility, improved work-life balance, and cost savings. However, we must address challenges like isolation and inequalities to ensure a productive and inclusive future of work.
WFH is the best thing since sliced bread.