BACK TO THE OFFICE ?
This page , photo by Luis Alvarez learning and making business and social connections . In many cases , in-person workplaces can offer more resources and tools to help them be productive . The report also points out that working remotely could present challenges to some employees because of space or technology issues at home .
CHANGING SPACE However companies choose to bring back workers , offices themselves will face physical changes . “ We ’ re likely to see office layouts change , in which there ’ s some de-densification , in which there ’ s a reallocation of space from individual workstations to larger , collaborative meeting spaces ,” says Homa .
The PwC / Urban Land Institute report notes that companies had been reducing office space before COVID-19 by shrinking the space per worker through bench seating and an increased use of common areas . This trend , though , will likely reverse — 63 percent of the respondents said that because of social distancing recommendations , office tenants would now need to increase the square footage per worker .
In the short term , Homa says , offices will also have to offer pandemic-related safety features such as hand-sanitizing stations , social-distancing measures and signage , and touchless technology . Longer term , he says , “ the pandemic has provided a renewed focus around health and well-being in general , and specifically indoor air quality . Ventilation , filtration , and air purification are huge issues , whether that means upgrading HVAC equipment , putting higher caliber filters in place , or even changing design specs around projects to provide operable windows or outdoor and terrace space .”
Such improvements will come at a price ; although Emerging Trends notes that because the demand for increased health and safety features has been so accelerated , the market is still sorting out the requirements and costs . The report quotes one developer who estimated costs “ somewhere around 1 to 2 percent of our total development budget .” At the same time , such upgrades could end up being a competitive feature in the marketplace . The report quotes one executive who said , “ Smart building owners are going to want to say our building has the cleanest air quality .”
Another competitive feature that went dormant in the pandemic but will likely return ? The trend toward high-end amenities , such as in-house gyms , coffee bars , and posh cafeterias will pick up where it left off before the pandemic . “ Just as restaurants are opening up , these help create a desirable environment for workers ,” says Spiegel . “ Presuming they can accommodate public health measures , I think those places will stay . We just want them to be safe .”
The post-pandemic work environment may give a boost to coworking spaces . “ I think what was originally perceived to be a high-risk moment to coworking may be the salvation once the pandemic is addressed ,” Spiegel says . “ They present a workplace solution that ’ s flexible , because it ’ s not long-term , and ubiquitous , because there are so many locations .” Coworking spaces , he says , help companies that might be reluctant to lease space because they ’ re not sure of their workers ’ needs . The flexible model lets them wait and see how the marketplace will shake out .
In fact , a recent report from Colliers International predicts “ significant growth ” of flexible workspace outside of CBDs . It also says the “ flexible workspace supply outside of downtown locations is already causing a supply pinch in some markets .” The report , Flex Forward : What ’ s Next for Flex in 2021 , adds that non-CBD flexible space will increase dramatically this year , with supply coming from existing operators and new entrants as well as “ repositioned retail and hotel assets .”
CITY VS . SUBURBS As the pandemic progressed through 2020 , many city-dwellers looked to relocate to suburban and even exurban areas , both to escape densely packed urban areas and have more space as they started working from home . Will offices follow ?
“ There ’ s a tremendous amount of talk about the urban-to-suburban migration , but the larger issue is region to region ,” says
Coworking spaces help companies that might be reluctant to lease space because they ’ re not sure of their workers ’ needs .
CIREMAGAZINE . COM COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE 27