Workplace Tips

Office space set to reduce by up to nine million sq ft – Workplace Insight


office spaceMain UK employers plan to scale back their workplace area by as much as 9 million sq. toes, equal to 14 Walkie Talkie buildings – the 37 ground excessive rise on London’s Fenchurch Road – in line with PwC’s Occupier Survey of 258 of the UK largest firms.

The recent figures present half of the organisations surveyed anticipate to scale back the dimensions of their actual property portfolio and, of those, one third consider they may scale back their workplace footprint by greater than 30 %.

The findings point out there’s more likely to be a large fall in occupied workplace area. Solely 10 % of these questioned agreed that the extent of workers working from the workplace will return to pre-pandemic ranges. Regardless of bearing in mind mass vaccinations, round half of the senior executives surveyed consider workers will proceed to work nearly two to a few days every week.

 

Key findings

• 71 % of respondents plan to extend funding in expertise that permits agile working over the following two years.
• Urge for food for implementing ‘(sub)leasing fashions’ and exploring partnership fashions resembling occupancy linked leases is low amongst respondents with the bulk having no plans to introduce them sooner or later.
• For organisations with greater than 100 workers, 51 % have a real estate and office technique that considers the long run impression of COVID-19.

Angus Johnson, UK Actual Property Chief at PwC UK, mentioned: “The figures couldn’t be extra clear, the shift to hybrid working, with a part of your time at house and half within the workplace, is just about embedded into the working tradition of many organisations. A lot so {that a} important proportion of the companies we spoke to are planning to scale back their workplace portfolio, which may result in as much as 9 million sq. toes of vacant area.

“Nevertheless, it’s clear that the function of the workplace shouldn’t be going to vanish. We may even see an elevated demand for versatile area as many companies working fashions could effectively want that choice if holding useless area is to be prevented. It’s additionally clear that the character and goal of workplace area goes to alter.

“As occupiers search new, completely different area to fulfill their lodging wants, environmental features can be more and more vital. If the true property sector is to really succeed as a extra dynamic, greener business it’s crucial that inventive considering involves the fore.”

 

Trade sector tendencies

Throughout business sectors, the Occupier Survey findings declare that simply over half of all respondents mentioned that digital working has had a optimistic impression on productiveness of their organisation.

“It’s clear that the function of the workplace shouldn’t be going to vanish.”

Nevertheless, throughout the monetary companies sector, fewer corporations see digital working as having a optimistic impression on productiveness (48 % optimistic impression vs 55 % total) regardless of nearly 9 in 10 disagreeing that workplace working will return to pre pandemic ranges. As compared, organisations throughout the authorities and public sector see digital working as having a optimistic impression on productiveness (70 % optimistic impression vs 55 % total).

As talked about, half of the organisations surveyed assume their organisation will scale back the dimensions of its actual property portfolio and of those, one third consider they may scale back by greater than 30 %. For monetary companies corporations, 60 % of respondents mentioned that they may scale back their footprint with 59 % anticipating it to scale back between 21 % – 40 %. For organisations throughout the authorities and public sector, 57 % mentioned they may scale back their workplace footprint with 60 % anticipating it to scale back between 11 % – 30 %. Throughout the client markets sector, solely 28 % of companies said that they plan to scale back their workplace footprint (vs 50 % total).

Over three quarters of respondents mentioned they’re more likely to reconfigure current workplace area with 43 % of monetary companies corporations stating that they’re extraordinarily probably to take action because of the pandemic. Throughout the client markets sector, 62 % of companies additionally plan to reconfigure area stating collaboration as a key driver. Being extra agile for future disruption was additionally cited as a key purpose (60 % vs 47 % total).

Picture by raumfeld76



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