The Human Factor
In 1994, Bill Gates’ predicted that the new ‘Information Highway’ (i.e. the internet) would mean that “commuting to an office becomes pointless”.
However, something Gates had not accounted for was the extent to which we as human beings thrive on face to face contact.
Covid-19 has undoubtedly helped Microsoft Teams and Zoom to prove their technological worth. But the pandemic has also underlined just how precious ‘in-person’ social interaction is in a work setting.
The data certainly supports this view. A recent survey of 2,000 office workers by business equipment firm Raja revealed that social interaction was what they missed most about their workplace.
This ‘human factor’ is therefore crucial to understanding the future of the office. Whilst change is almost certainly on its way, it seems clear that the office is far from dead.
The Covid Legacy
The last few months have demonstrated that home working is viable for most of us for at least one or two days a week, at any rate. Crucially though, employers have realised that in the main, they can trust their employees to do what is expected of them, even when they are out of sight for months at a time.
When life eventually gets back to normality, what will the long-term effects of Covid 19 be on the office?
Here are our thoughts on some of the changes you can expect to see:
· More Autonomy
Expectations have changed. Employees now expect to be able to work from home as and when they choose. As a result, employers will be expected to offer greater flexibility within employment contracts to attract and retain talent. Some may insist that their staff attend the office a minimum number of days a week whilst others may adopt a laissez faire approach, allowing staff to decide for themselves.
· More Fun
The office now faces competition from the home as well as ‘Third Places’ (e.g.’s coffee shops, collaboration hubs). As a result, offices are likely to become more ‘experiential’ in nature We are also likely to see far more generous and attractive break out spaces created to facilitate social interaction amongst staff. They will also probably need to inject a bit of fun if staff are going to invest in a daily commute.
· More Choice
Something that many offices currently lack is a choice of work settings to suit difference modes of learning and collaboration. This will change as the office evolves into what is termed an ‘activity-based working environment’.
· More Focus
The design and specification of the office of the future will have to match that of the best home office. This might mean for example, that we will see more acoustically protected study spaces created to allow staff to carry out their focused work away from the distractions of the open plan areas. Similarly, we are also likely to see a greater number of ‘Zoom Rooms’ provided for those all-important virtual meetings.
· More Hub (and less Smoke)?
In some organisations, staff will be provided with access to collaboration hubs close to where they live. This will allow them to work in a more agile way that removes the necessity to commute regularly into the central HQ whilst still providing them with a professional work environment where they can collaborate and socialise with others. A return to the ‘hub and spoke’ office infrastructure that was favoured by the I-T and financial services sectors back in the 1980’s and 1990’s would provide a much needed boost for out-of-town business parks. However, concerns over sustainability, public transport and local amenities might mean these hubs gravitate instead to larger satellite towns.
· More Availability
The overall demand for conventional leased office space in major city centres is likely to decline as organisations allow greater numbers of staff to work from home and ‘Third Places’. Even if staff spend on average just one day a week working from home, it might be possible for companies to reduce their office space by 20%. The availability of office space through landlords and existing tenants is therefore likely to increase resulting in relative over-supply in several office markets. This could result in increased competition and lower rents.
· More Obsolescence
Older office buildings with limited lift provision and poor-quality air handling/air conditioning systems will struggle to secure new tenants and will eventually have to be converted to alternative uses or redeveloped altogether.
If you are struggling to assess what your future office requirements will be post-Covid or you need advice on re-negotiating or exiting your current office lease, please contact a member of the TAG team by calling 0161 457 1422 or emailing myfutureoffice@tenantag.co.uk