Offices are set to evolve in a post-pandemic world into places were people have fun as well as work, a leading property expert predicts.
Joanne High, head of the Plymouth agency for South West property consultants Vickery Holman, said the enforced shift to working at home during the Covid crisis means fewer people will return to the office.
And that means companies will not only want less space, and out-of-town locations, but will have to provide an environment which does more than just give staff a place to work – but to hold meetings, socialise and have fun.
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That could mean employers including such things as places to eat and even gyms to entice employees back in, who are likely to be splitting their working week between home and the office.
Mrs High, speaking during , said the Covid pandemic had caused “the world’s biggest work from home experiment” and said: “The past 12 months has seen everyone work from home in some capacity, whether during the first lockdown or full-time during the who period Covid has been around.
“Companies which would never have considered having employees work from home, all of a sudden not only had to do it but actually realised there were many benefits.”
But she stressed people’s views changed throughout the past year and many started to realise that face-to-face interaction is important, and she said businesses are looking at a flexible approach to satisfy those that want to remain at home and those that want to come back to the office.
“I think we will see the majority of people working with a blended approach, so two days in the office and three days at home, for example,” she said.
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“This means that most companies are likely to reduce the amount of space they require. That space will be much better quality than the current norm is, after all, if an office is just about somewhere to work then we have proved we can do that from home.
“It needs to be more than a separation between home and work,” she stressed. “If we are going to get people to leave the comfort of their houses and travel to somewhere to work then we need to entice them in and create a destination.
“We will need to provide a space they will want to be in, where they can do other activities, such as going to the gym or having lunch with a client or colleague. We need to provide space for socialising between colleagues, after all, that is how we build the culture and business.”
She added: “The space needs to be flexible, providing desk space, but also informal and formal meeting areas to meet everyone’s evolving needs.”
Mrs High said she expects to see a shift to smaller hubs, outside city centres, which will be easier and quicker to access. But she said: “That doesn’t mean the end of city centre offices, as I think companies will still want a presence there, but with a smaller floor plate.”
Mrs High said there could be demand for more flexible serviced work accommodation, something “that has never really taken off in the South West, to the same extent as other regions”. She said: “I think this will change and we will see the range of serviced accommodation increase. At the moment the largest flexible office provider in Devon is reporting occupancy rates of 84%.
“I can see requirements being two-fold, firstly from companies wanting smaller, flexible regional hubs to supplement larger city centre operations, but also from smaller business start-ups and those whose companies want them to work from home but the individual would prefer to be located in an office.
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“I think landlords are going to have to be more agile and accept shorter more flexible terms. This could see rents rise as tenants pay for better-quality space and flexibility.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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Mrs High said that in Truro and Plymouth demand for office space is generally subdued and supply is also low, which means occupiers don’t have a great deal to chose from.
In Exeter, demand is generally higher but the city has a very little supply of office stock with no “grade-A” space currently available, although there is some in the pipeline at the redeveloped Georgian manor Winslade House.
She said demand was strong in Exeter but also office stock has been removed from the market and converted to residential under permitted development rights.
The Bristol market is continuing to see a huge demand despite the pandemic coupled with a lack of supply, she added, which has resulted in some occupiers agreeing a pre-let contract two years in advance of buildings being constructed.
“Bristol is largely regarded as the regional hub for the South West with occupiers not only moving around in the city but also drawing in new companies from London and the rest of the country,” she said.