_Key factors that will shape the future of the office

Over the past few weeks, the future of the office has been a hot topic for debate. Covid-19 has been the large-scale workplace shift that no-one anticipated. 

Within a matter of weeks, firms across the world were closing their doors, home offices were assembled, and we were forced to place our faith and productivity in the hands of technology. 

Almost a month into lockdown, working-from-home has provoked restless opposers and productive supporters. 

Consequently, this has led to much speculation on what the future of the office will look like and whether the office will become a thing of the past. While working from home has undeniable benefits – the lack of a commute, financial savings and an increase in spare time – Covid-19 spelling the end of the office could not be further from the truth.

Why do we need the office? 

The modern world has instilled a pressure to always be accessible. Our increased availability makes it almost impossible for us to disconnect, virtually and mentally. We perceive urgency differently at home, perhaps in an attempt to prove our productivity to colleagues and managers who cannot physically see us sat at our desks; however, does an ‘active’ status two hours past the end of the working day signify ambition and dedication, or an inability to switch off? There’s no right or wrong answer but working from home means that the boundaries become increasingly blurred. 

If the Covid-19 crisis has revealed anything, it’s the importance of community and our integral need for social interaction. Video calling is great, but the punchline of a passing joke is easily lost in a three second audio delay, not to mention how off-putting it is to hear your own voice echo five times in everybody else’s sitting rooms during a conference call. The subtle nuances of conversation are inevitably lost in translation via email and IMs (no matter how many emojis we add), and the only ‘clink’ you will hear at Friday work drinks is that of your glass against your laptop screen. Technology is transformative – but it will never replace human interaction.

Far from spelling the end of the office, this period will serve to remind us of the potential that offices can offer a business and turbo-charge previously emerging workplace trends. Here are the key factors that will shape the future.

Reoccupation: environmental and behavioural change 

When restrictions are relaxed, strategic office reoccupation will be every business’ number one priority. The World Health Organisation advises that all employers need to consider how best to decrease the spread of Covid-19 and lower the impact in their workplace as they begin re-population. This falls into two categories: environmental and behavioural. 

Environmental will include factors such as increased cleaning regimes, increased airflow and changing HVAC filters more regularly. Behavioural changes will become the responsibility of all employees, as businesses may implement social distancing measures, particularly in areas deemed susceptible to high contamination, or new rules regarding desk-clearing. 

Richard Proctor, Head of London Tenant Representation explains: “In Knight Frank’s (Y)OUR SPACE report (launched in 2018), which polled 120 global corporate real estate leaders, we found that 60% expected to increase the density of occupation within their buildings – persuading people to sit more closely together to increase efficiency. Post Covid-19, we anticipate a big push back from densely packed offices.”

Productivity push: the role of the office as a strategic device 

The role of the office as a strategic business device was a theme also explored in (Y)OUR SPACE. Businesses have been looking to harness the power of offices as part of their strategy since 2010. In fact, 87% of global corporate real estate leaders surveyed for the report identified real estate as a strategic device for their business and not just an operational requirement. 

Over the last decade, businesses have increasingly understood how their office can help attract and retain talent, promote their brand image, increase collaboration and innovation, and prioritise employee wellness. 

Consequently, the focus has shifted from ‘How much will this cost?’ to ‘To what extent will this increase productivity?’ As supporters of remote working will ask the office to compete with the home as a viable place to work, businesses will be looking at every way they can increase the value of their place of work, not only as a way of continuing to attract and retain employees but as a means of driving change, efficiency and productivity, thereby boosting their bottom-line. Looking forward, by striking a balance between office-based and remote working, businesses will be able to invest in better workplaces. They may take a little less space, but it will be higher in quality.   

Technology is twofold 

The role of technology in the post Covid-19 office will be twofold. Firstly, the adoption of next wave technology in the workplace will shape the character of the future office and the way employees interact. We are likely to see an increase in automation technologies that limit unnecessary human contact, as well as technology that works in tandem with health and safety regulations, such as body temperature scanners. 

Communication tech such as Microsoft Teams and Zoom (the latter of which has seen users increase from 10 million a day to 300 million in four months) have come into their own over the past few weeks and the impact could be long-lasting. One benefit that has emerged from the pandemic is the significant reduction in air pollution and CO2 emissions thanks to the halt of global movement. With travel bans still in place for the foreseeable future and this ‘trial’ period proving how much can be achieved remotely, we could see a significant reduction in business travel for face to face meetings and non-business critical activities.   

Secondly, and as a consequence of the first point, new wave technology companies are shaping up to be a source of high demand within occupational markets. With the past few months highlighting the importance of rapid growth technologies, be it in the development of a vaccine, PPE and ventilators, or the future demand for technology that will enable businesses to reopen and operate relatively normally, the tech sector, by its broadest definition, is set to continue to dominate office take-up. One thing is certain, Covid-19 has shaken up boardroom complacency in respect of technology. 

Wellbeing and healthcare

A critical part of the office reoccupation process will be developing trust and confidence with staff that their official workplace is safe and looking after their health. Under the second point, a working environment that promotes wellbeing through facilities and design has become increasingly viewed as part of a strategy to help business thrive, or even as a trend that fulfils what employees expect from an office in the current age. As offices begin to reopen, we will see health and safety measures such as body temperature scanning, social distancing (particularly in high-risk communal areas), and greater stringency around presence and precautionary measures when feeling unwell, align with the already established office ‘wellness trend’. This alignment will not just act as a temporary critical enabler on the road to workplace normality, but as a template for how businesses will continue to operate in order to look after their staff in the broadest way possible.

Acceptance of agile working 

Working from home is not a new phenomenon by any means but not all sectors have raced to list it as an employee perk; however, the rapid development of Covid-19 meant that working from home was no longer a matter of choice – for almost all businesses it was sink or swim. The success of the past weeks will help pave the way for the future. In fact, Knight Frank has been conducting surveys with clients’ employees and 80% are appreciating the benefits of WFH; however, the biggest concern is being overwhelmed with information and/or conference calls.

The pandemic has shone a light on the value of choice. To achieve true working agility, choice of setting and environment is key. Working from home every day is no more agile than working in the office every day. The office will always be a valuable asset, but employees will now view it through a different lens. It will become a task-specific workplace setting, which, combined with a new awareness of home productivity, could lead to employees developing a greater understanding of how to derive value, productivity and wellbeing from different working locations. A total transformation to agile working requires employees to feel empowered to make task-dependent decisions regarding where they can work best – an unexpected but fruitful side effect that we anticipate will emerge from this period. 

The heightened awareness of choice could work in tandem with the new perspective that many businesses have been faced with over the past few weeks. As Lee Elliott, Head of Global Occupier Research explains: “What is clear is that business will need to be more balanced in its views of who and what is important to their operations. The work of front-line employees during the crisis, many of whom have perhaps been overlooked historically, will sharpen focus on more equitable business structures and will increase demand for workplaces that support a broader spectrum of needs.”

The London Tenant Representation team offer a refreshingly different approach by exclusively advising office occupiers across the London market, delivering optimal real estate solutions via carefully formulated property strategies and robust, impartial negotiation.

For more information, contact our London Tenant Representation team today.