More people are heeding Government advice to return to the office in England, which is good news for commercial property landlords, but questions remain over the future of full occupancy.
As flexible or hybrid working is adopted by many businesses, recent figures show that around 50 per cent of staff have returned to the office in some form.
A survey in September of more than 1,000 office managers, undertaken by the Chartered Management Institute, shows that a third of businesses have cut space as firms have increasingly adopted the hybrid working models.
This means landlords will have to be creative to fill the empty spaces.
The survey, conducted on behalf of the Financial Times, shows organisations have an average of around 44 per cent of staff in the workplace at least some of the time.
The survey found that managers expect this to increase to just 56 per cent by the end of 2021, suggesting that flexible working practices are unlikely to fully unwind in the short term.
That means a lot of empty space is available in large buildings.
One solution could be what has become known as the ‘hotelification’ of office buildings by turning them into high-end workspaces, with tenants looking for improved, club-like facilities with space for secure bicycle parking, changing facilities and other services.
Earlier this year, Gerald Kaye, chief executive of property developer Helical, which is behind six office schemes in London and another one under way, expects good demand for modern developments.
He pointed to tenants requiring the most efficient and up-to-date air conditioning systems, and greater demand for secure bike parking and high-quality “club style” changing facilities.
Mr Kaye added: “We will see an increasing “hotelification” of office buildings, with five-star management a necessity.”
His view is echoed by Richard Morris, director at the internet and workspace management software firm, technology within, who believes that it is no longer enough to simply provide a workspace, it is also necessary to match the ease of working from home by offering more with an office building.
He quoted a ‘one-stop shop’ solution, which would bring multiple services under one roof for the convenience of staff and could include GP surgeries, hair salons, cafés and bars. That would encourage staff to return to the office and stay there.
He added that while matching home facilities is important, the technological structure must also be key to matching more flexible working trends. This includes robust communications systems.
Services could include ‘self-service’ touchless AI-enabled systems, such as systems that can adjust lighting, heating or air conditioning with voice control, which could help them feel more comfortable and Covid-secure when returning to the office.
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