Commercial Real Estate in Concurrent Market!

Commercial Real Estate in Concurrent Market!

A survey of Company Chiefs conducted by the Institute of Directors found that more than half of them were seriously rethinking the need for office spaces, possibly cutting down long-term use of offices after the lockdown is lifted

It comes as no surprise that the coronavirus has impacted our lives and our pockets in ways that will take some years for our brains to fully comprehend. Tales about the validity of vaccines and the bizarre rumours surrounding its “clandestine objectives” are becoming increasingly mainstream much to the dismay of the scientists who have spent their every waking moment, devoted to put an end to this crisis.

People didn’t have to physically go to work last year. I realise that I am fortunate to have the privilege to find a silver lining amidst a crisis that is killing thousands. A compromise, forced by the hands of a global catastrophe, was made by many companies when they had to abandon their offices and quickly adapt to working from home. A lot of companies sold their office spaces in the middle of the pandemic and reportedly saved themselves from a lot of unnecessary spending, this also had a an impact on real estate market.

A survey of Company Chiefs conducted by the Institute of Directors found that more than half of them were seriously rethinking the need for office spaces, possibly cutting down long-term use of offices after the lockdown is lifted, giving many the option to work from home. But this is not the only thing on a slow decline.Real estate market is witnessing a decreased demand for office spaces from companies. Companies like HSBC Holdings Plc and Lloyds Banking Group are predicting a 40% and 20% decline in their office spaces, which could bring a big change in real estate market. While the demand for office spaces is seen to decrease, those office spaces are expected to be turned into flats by landowners. But can we really expect offices to be extinct? The short answer is- no. But the actual answer is complicated.

Remote working could come as a sigh of relief for some. But ask any HR executive and they’ll tell you that the key to a good team is- interaction. With companies reconfiguring their working model, new recruits are losing the camaraderie of working with a wide palette of people, the joy of learning from one another and making lasting relationships. Some companies want to abandon the offices altogether and make remote working permanent, while some are excited to incorporate the lessons from lockdown into a hybrid model that is flexible and redesign office spaces to fit the needs of their employees, requiring them to attend only important meetings in-person. By making working from home a more commonly accepted method, companies are opening themselves up to a more diverse range of candidates who are not limited to the vicinity of the office thereby tapping into a larger talent pool.

Just like everything in life, companies have to find a balance that is flexible, productive and non-exploitative.

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