The Future of the Office

CBRE Global Research has recently undertaken a survey of 126 senior-level global real estate executives to determine how the Covid-19 pandemic is changing the location, design and use of office space.

Questions put to participants included how much their business allows employees to choose when and where to work; what future portfolio strategies are under consideration; and what role flexible office space will play in their real estate strategy.

As with any global survey, the responses represent a wide range of circumstances both regarding the pre-Covid-19 status quo as well as the length and severity of lockdowns and social distancing restrictions. That said, we believe that many of the survey findings resonate with New Zealand occupiers and can help to identify evolving workplace trends and the changing sentiment towards office environments.

Key findings of the survey include: 

• The proportion of companies that will allow at least some of the workforce to work remotely almost doubled from 37% pre-Covid-19 to 70% now, with 61% of participants indicating that all employees will be allowed to work fluidly (between remote locations and the physical office).

• 72% of participants think that the Covid-19 pandemic will have significant impact on their long-term real estate strategy and will accelerate the transformation of offices with regard to employee-centric policies, technological advancements and workplace health and safety.

• There is currently little desire to leave high-density urban cores with only 8% of respondents considering dispersion. At the same time, 73% of participants expect that flexible office space will play at least some role in their future strategy.

• In terms of the workplace, assigned seating environments are the most susceptible to change with the proportion of companies indicating preference for mostly assigned seating dropping from 58% pre-Covid-19 to only 18% now.

The shift in the function of the office from being a place for traditional work processes and oversight to serving a more collaborative, educational and social purpose is not much different from the evolution of the office before Covid-19. However, in the post pandemic environment, workers enabled by technology and emboldened by their experience in working away from the office will have increased expectations for the office to which they return.

It is now more critical than ever for companies to take this journey as the workforce is on an accelerated path of change.