Business & Investment

What the future of WFH means for office space

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Productivity remains high during pandemic telecommuting experiments, and both employers and employees continue to rethink and assess physical office space needs. This, in turn, has profound implications for the future of the workplace and overall commercial real estate, but it is not yet clear.

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The final article in Cushman & Wakefield’s report trilogy, called New Perspectives: From Pandemic to Performance, gathers feedback from 32 owners, occupants, and placemakers, and the role of office space when employees return safely. I explored how to change. And, of course, focus group occupants have shown that as “zoom fatigue” becomes more and more serious, employees have expressed their desire to return someday.

Studies show that it is a reasonable assumption that the average employee works remotely two days a week.Similar results were achieved in the JLL report, which asked about 2,000 office workers, with 66% of the group Work remotely at least two days a week.. However, the balance between remote and office work is expected to depend on the needs of organizations, departments, teams, and individuals.

Few employees are expected to work exclusively in remote areas, so they need to adapt their workplace objectives to stay productive, innovative and creative while staying responsive to their preferences. there is.

Old and new

Historically, density has been associated with the number of people per desk. In an agile work environment, there is a distinction between space per person and space per work point, with occupants focusing on communal and communal spaces, the report said. Investors, occupants, and placemakers in the survey agreed that location remains an important factor. Employees will continue to prefer an easy-to-walk submarket with quick access to equipment that allows them to work remotely.

Read again: Expert Insights-The Next Steps in the Office Market

Meanwhile, following the volatility brought about by the pandemic, big decisions are off the road. This is reflected in Cushman & Wakefield’s 2020 lease data, which has reduced overall activity and accounts for a larger proportion of transactions that have completed short-term renewals. This reflects the tenant’s hesitation regarding long-term commitment. This could redefine what long-term leasing is, and many companies are worried about making 10-year decisions.

Move-in shock?

The Cushman & Wakefield report also shows a simulation using data from 2017 to 2019. This simulation examines the expected impact of remotework on office demand across the top 35 domestic markets, taking into account several parameters. The simulation determines the shift as a percentage of total office inventory.

All metros recorded negative shifts, but the numbers are very small, 0.2-0.4 percent. The results are consistent across regions, but are not expected to have a significant impact on overall demand in the medium to long term.

Read the full report by Cushman & Wakefield..

What the future of WFH means for office space What the future of WFH means for office space

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