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Future of offices:
in a post-pandemic world
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
AMERICAS PERSPECTIVE
Future of offices:
in a post-pandemic world
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
COVID-19 has accelerated a range of pre- change in its wake. The commercial property
existing trends in the commercial property sector has not been immune to the accelerated
sector around health and wellbeing, activity- impacts of COVID-19 and the Foresight team
based working, flexibility and the drive for in partnership with our global property team
better space utilisation. Sustainability, smart has set out to identify what the new normal
buildings and the digital workplace are also will look like for commercial property post
reshaping the commercial offer. Taken together, COVID-19.
these trends and developments will profoundly
impact the kinds of workplaces likely to be The pandemic has generated many questions
needed in a post-pandemic world. for commercial property owners, developers
and tenants alike: what is the role of the
In this thought-piece we explore how workplace? It is to be expected that some of
workplaces in the Americas could change the changes we are currently experiencing are
in the years following the lockdown and temporary in nature while others will leave
look at developments in how people may lasting impacts.
work together both remotely and in the same
physical location. In this thought-piece, we first describe some
of the ways that work in the Americas has
The global pandemic has exposed the fragility changed under the pandemic. We then delve
of many of our systems and created a high into the implications of these changes for the
degree of uncertainty and potential for great commercial property sector.
FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
6 . S U R G E O F V I R T U A L C O L L A B O R AT I O N
7 . O P T I M I Z E D O F F I C E S PA C E S
8 . H Y G I E N E C O N S I D E R AT I O N S
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
Consideration for
D I G I T A L T R A N S F O R M A T I O N for meetings?
From physical to virtual spaces, there is an
the acceleration
increasing number of platforms that make up Do we need as much conference room space?
what we can consider to be the ‘workplace’,
of digital
or the space where we perform our work. The What are the types of work activities that can
number of platforms to perform work tasks best be performed at home and in the office?
transformation
have evolved rapidly as our society becomes
more interconnected through digital and What is the role of the office? To promote an
physical platforms. The COVID-19 pandemic organization’s culture? To attract talent? To
has only accelerated the demand for remote meet and form social bonds? To host clients?
tools that allow for virtual environments.
Will flexibility on remote working policies
Many view the working conditions during attract more talent?
COVID-19 lockdowns as demonstrable
proof that remote working can be successful, Will candidates’ living circumstances be taken
thus accelerating the trends of digital into account in the hiring process?
transformation. Staff have had to quickly
upskill on a variety of digital platforms, and Will employers offer home utilities coverage as
this new fluency will likely influence our part of benefits packages?
ways of working and our physical workspaces
moving forwards. Who will be responsible to ensure that staff
have an ergonomic working space at home?
This factor will inevitably change the role of
current physical working environments and How will the office work culture be
will increase the demand for technological carried online?
developments that can help us track and
manage resources and reduce capital and
operational costs.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
2 . A D O P T I O N O F R E M O T E W O R K I N G 3 . T R A V E L Q U E S T I O N S
Millions of workers across the Americas began The challenge of getting to and from the office
working from home during the pandemic. after the COVID-19 pandemic recedes will
“
Remote working was already a growing trend likely affect how often people go to the office.
in the US, with five million people (3.6% of Those who can walk or cycle to work might
the U.S. employee workforce) working from still consider working from central offices, but
home at least half their work week in 2018. those who have long journeys or commutes
We’ve seen that require public transportation might become
Remote working reduces operating costs accustomed to working from home or in an
two years’ as “…a typical employer can save about office space close to their homes.
$11,000 per year for every person who works
worth of digital remotely half of the time,” according to Global 4. NEW IDEAS ABOUT THE PURPOSE
Workplace analytics. Meanwhile, staff have
transformation
O F T H E O F F I C E
the ability to choose to work in locations with The office space was once centred around
lower cost of living or move to retirement- access to shared infrastructure: copy machines
in two months.” friendly locations like Florida. and files, then computers, printers, and network
connection. Now, with cloud storage and the
Satya Nadella Remote working can happen in a variety of move to paperless workplaces, the office is
Microsoft CEO modalities from all staff working remotely, to coming to be seen as a place to form social
a percentage of staff remote, or have staff work bonds, create corporate culture, host clients,
remote on specific days, a hybrid between and attract talent.
working in the office and at home. There could
even be an adoption of working from home 5 . A R E T H I N K O F O F F I C E S P A C E
on specific days of the week, such as ‘remote If half of an office’s employees are going to
Fridays’. If more personnel work from home be working from home on any given day, then
one or two days per week, their personal desk tenants may not want to pay for an office filled
usage might be reduced. This could encourage with unoccupied desks. This may result in the
business owners to turn to the use of hot reduction of individual office spaces, making
desking or hoteling, potentially balanced by companies reconsider their office layouts in the
additional space dedicated to office amenities long term and shift away from assigned spaces
and increased footprints of each desk to enable for individuals.
physical distancing.
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FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
How should commercial property firms analyse How will corporations achieve business
Consideration
the impact of the changes we have identified? resilience in the face of future pandemics?
What will these developments mean for the Through decentralization of space and increase
for buildings
way their customers do business? In this in satellite offices? Or avoidance of multi-tenant
section, we describe some of the ways that office buildings?
organizational
leaseholders will change.
Will there be an increase in co-working spaces
resilience
THEY WILL BE MORE FOCUSED ON in suburban areas for those who work remotely?
B U I L D I N G O R G A N I Z AT I O N A L R E S I L I E N C E
The pandemic represented an enormous What type of resilience skills will companies
disruption to organisations across the look for in candidates?
Americas, ‘blindsiding’ them and causing
enormous damage. Most will be heavily What type of resilience and wellbeing cultures
focused on avoiding the chance of this ever will talent look for in companies?
happening again.
What are measures that organizations should
Once solution here is to create resilient consider to create work spaces that provide a
operating models, which prepare organizations sense of safety and cleanliness for employees?
to anticipate and respond to the changing
nature of their business, allowing them to How can landlords work with their tenants
‘bend, but not break’ and ensure business to better understand their needs and
continuity. A resilient organization is one that is concerns and find ways to create a safe
able to operate in the face of threats, embracing and positive workplace?
disruption and mitigating risks including those
related to economic instability, security, the What new services will landlords need to create
effects of climate change, and changes in the to promote workplace wellbeing? Will janitorial
supply chain, among others. services, UV lighting, air filtration systems be a
higher priority moving forward?
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
T H E Y W I L L VA L U E F L E X I B I L I T Y O F
S PA C E S , S Y S T E M S , A N D O P E R AT I O N S
The pandemic left many firms struggling with These measures typically run counter to energy
cashflow problems, paying high rent on offices reduction (and climate change mitigation)
they were not using. This has been a distressing modes. Systems need to be designed for offices
experience, and they will increasingly want to to operate in a variety of modes and easily
push for a more flexible model. transition from one mode to another.
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In either case, now is a critical time to think not only potentially puts health at risk, but also
about the optimum location (or locations) of impacts people’s ability to function effectively.
offices. Do you invest in office space closer to Active design, or the encouragement of physical
where people want to live or closer to hubs of activity and health, is increasingly being
economic opportunity? Employers may develop embedded into the design of spaces. As part
a flexible toolkit of workplace offerings to allow of benefit packages, companies provide more
employees to choose for themselves. resources for mental and emotional support.
One way of making this possible is the concept There is also an increased emphasis and
of ‘digital concierges’. The digital concierge is inter-co-worker empathy relating to work-life
the interconnectivity of clusters of spaces spread balance. An increasingly user-centric mindset
over a portfolio of assets, which are governed necessitates a holistic approach to workplace
and accessed through apps or other interactive well-being, which might include air and water
platforms. This helps make an otherwise quality factors as well as nutrition services
discrete group of spaces and environments part and policies. This spans across spaces like
of a cohesive whole. meditation rooms and daylighting, to programs
like mindfulness classes, to policies on flexible
THEY WILL DEMAND OFFICES WHICH work hours.
O F F E R I N C R E A S E D S U P P O R T O F H E A LT H
A N D W E L L N E S S Employers are drawing inspiration from the
The global pandemic has undoubtedly brought hospitality sector to design and program their
health and hygiene concerns into sharp focus, workspaces for employee satisfaction. In the
and it is therefore very likely that companies short term, as a response to the coronavirus
In the next section,
will expect office spaces to conform to the pandemic, there is a need for offices to support
we explore how the
highest standards of health and wellbeing. their people in feeling safe, healthy, and resilient
demand for social
as they return to work. This may involve visible
interaction will mean
The quality of the indoor environment can have and more frequent daily cleaning practices to
offices continue to
a significant impact on the health and wellbeing contribute to a sense of safety.
exist – even if they
of occupants. For example, thermal discomfort
may look different to
what went before.
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FUTURE OF OFFICES
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COVID-19 has impacted the world in an and interact. Working from home will be more
© Adam Rouse Photography unprecedented manner, affecting public health, prevalent but mixed in with social interaction
the global economy and increasingly the way provided by the office.
in which people behave and interact with each
other and with businesses. While many media This introduces some intriguing possibilities for
headlines have declared the death of the office, the potential future purpose of these spaces. In
others who have weathered previous crises are this section, we describe how the purpose of the
less certain. office could change.
“Will the role of the workplace change and THE OFFICE WILL BE ABOUT
how?” Many employers are considering just P E R S O N A L C H O I C E
this question as they assess their leases and Now that employers and employees have
high costs of rent. In the short term, the role accepted the viability of working from
of the workplace will need to evolve to meet home, offices of the future will become
the needs of new social behaviours and norms increasingly about personal choice, and
around physical distancing. However, it is whether staff feel confident about the safety of
quite likely that, once a vaccine is introduced, their work environment and the productivity
physical distancing and imposed quarantine will that can be achieved either from home or from
give way to a need for community and social the workplace.
gatherings – even though people do not strictly
need to be at the office to work. In both the short and long term, these choices
will be driven by personal experiences and
It is worth remembering that an entire preferences. The lasting impacts of COVID-19
generation of business startups and will largely depend on human behaviour, as
entrepreneurs had a chance to work from we balance the need for safety and the need
home after the financial crisis of 2008, and yet for social interaction. Companies and HR
they did not. They wanted social interaction, teams will not force people back into the
a place to focus and share ideas, meet people, office or to work in a place where they feel
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
uncomfortable. Instead, companies should THE OFFICE WILL BE A KEY TOOL FOR
consider enhanced cleaning techniques, more A T T R A C T I N G T A L E N T
distancing and increased choices for employees The lockdown has been relatively easy for
across a campus (providing places for focus, the baby boomer generation who own homes,
collaboration, learning, socializing and respite), have extra space and are settled. However, it
better air filtration systems, and more access to is important to remember that many younger
outdoor space. workers live in shared accommodation and
cannot be fully productive in them. What’s
The impact of the pandemic will likely have a more, going to the office is an important social
long-term effect in the psyche of the generations activity, for making friends and, indeed, meeting
that have endured it. People will have a sense romantic partners.
of a shared struggle and will be sensitive to the
needs of their peers. These new interpersonal Employers will continue to compete for top
dynamics will likely augment the desire for talent and will look to locate themselves in
social interaction and cohesion between co- areas which are attractive to staff. In the future,
workers in the office space. This pandemic will employers will also need to be savvier in
therefore not incite a return to closed offices attracting employees by balancing workplace
and full-height cubicle partitions; people who efficiencies with quality experiences and
are coming to the office are doing so for social amenities. There will be a greater need for
interaction, and it is not viable to refit offices in hospitality-inspired spaces which promote a
this way for many organizations. greater degree of flexibility and activity-based
programming. This could lead to a reduction
in dedicated desk spaces and an increase in
interactive and collaborative spaces.
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Consideration for
life balance be reflected in the new work N E I G H B O R H O O D A C T I V A T O R S
environment? What new amenities will owners Companies have an opportunity to activate the
the acceleration
and employers need to introduce? streets they occupy and to contribute to the
economic and social vibrancy of their local
of digital
Will work performance increase when ecosystems through economic incentives, which
providing more opportunities for staff to have make their areas attractive to local retailers
transformation
flexibility? which in turn provide desirable amenities to
their building tenants.
How can organizations use office space for
social cohesion? Remote working, cloud-based working,
and paperless workplaces are creating the
How can property owners work with retail opportunity to redefine the role of office spaces.
tenants to make it viable for them to exist? This is an opportunity for workplaces to be
much more engaged with their neighbours and
How can organizations give back to their contribute to the surrounding neighborhood,
surrounding community and contribute to whilst enhancing employee experiences and
neighborhood vibrancy? ensuring business resiliency.
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AMERICAS PERSPECTIVE
Conclusion
In this think-piece, we have described some E X T E R N A L C O N T R I B U T O R S
of the key ways that office work in the Melissa Burch,
Americas has changed during the pandemic Executive General Manager, Lendlease
and lockdown. We have explored some of the
short and long term effects that these changes Andrew Dankwerth,
will have on the commercial property sector, Senior Vice President, Pembroke
and investigated some of the potential future
ways of working this has introduced. Global Workplace Leader for a multi-national
financial institution
The Americas region has long been a source
of innovation when it comes to office design Jonathan Flaherty,
and layout – introducing concepts like open- Senior Director, Tishman Speyer
plan offices and a major force behind the
recent development of co-working spaces in Business development lead for global real
the WeWork model. estate company
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AUSTRALASIA PERSPECTIVE
Future of offices:
in a post-pandemic world
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
COVID-19 has accelerated a range of pre- As we look across the Australasia Region, there
existing trends in the commercial property have been many different levels of disruption,
sector around health and wellbeing, activity- inconvenience and government responses to
based working, flexibility and the drive for the crisis. Most offices across the region were
better space utilisation. Sustainability, smart closed with workers required to work from
buildings and the digital workplace are home. As offices re-open they will need to
also reshaping the commercial offer. Taken respond to their specific contexts so workers can
together, these trends and developments will return safely.
profoundly impact the kinds of workplaces
likely to be needed in a post-pandemic world. If a long-term view is taken, there is great
opportunity to rethink office space across the
In this thought-piece we explore how region and use this crisis to transform the future
workplaces in the Australasian region could office to be more healthy, flexible, sustainable
change in the years following the lockdown and inclusive. This pandemic has required
and look at developments in how people may strong action to address, but by approaching this
work together both remotely and in the same health challenge in an integrated way we can
physical location. shape a world that is more resilient.
FUTURE OF OFFICES
“
The coronavirus is not only a health
crisis of immense proportion — it’s also
an imminent restructuring of the global
economic order.”
McKinsey and Co1
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FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
The lockdown has represented an enormous Those who are used to working in a well-
change in millions of people’s lifestyles designed workplace will experience these
across the Australasia region. In this section, downsides to working from home5. One
we describe what this change means for survey during lockdown found that there was
workers – and what they will come to expect an increase in musculoskeletal complaints,
from the office. a decreased focus on diet and wellbeing
including increased alcohol consumption,
During the initial lockdown, most office more cases of poor sleep and increased risk of
workers will have changed to a work from exhaustion and increased mental health issues
home situation. Many may have needed to with people who worked from home5.
improve their home offices so that they were
more comfortable and expanded their use of This mixed picture indicates that the lockdown
online communication tools so that they could is unlikely to threaten the existence of
work efficiently. A good proportion enjoyed the traditional offices. While it is true that many
opportunity to reduce commute times and spend workers have valued the opportunity to work
more time with their families. If working from remotely, many more have struggled and will
home is well managed, then many benefits can look forward to a return to the workplace.6
be experienced including flexibility which is
highly desired by modern workers4.
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FUTURE OF OFFICES
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In Australia the estimated cost of the increased interest in returning to the office.
lockdown has been AUS $4b each week7. As In Brisbane, a survey in late May suggested,
the number of new cases falls, governments around 74% of people would like to return
across the region will be keen to restart their to the office in some capacity9. To make
economies and encourage a reopening of this happen employers will need to give
cities and towns to reduce further economic workers confidence that it is safe to return and
impact. But it will not necessarily be an demonstrate the benefits of a centralised office
immediate ‘return to normal’. over working from home.
The number of people returning to the office It is likely that due to Australia’s and New
and amount of time that they spend there Zealand’s more spacious living arrangements
will vary greatly depending on individual with better access to outdoors and larger
needs and adaptability of office spaces to homes this change might be slower than in
both address these needs and operate within more populous countries or denser cities.
government policies.
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FUTURE OF OFFICES
A new normal
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
A D A P T I N G T O A N E W W AY O F W O R K I N G
South Australian company Detmold normally into offices it is more than likely that working
IN PRACTICE: AGILE WORKING
specialises in food packaging. However, in the from home will increase and travel will be
Agile project management methods enable
midst of the pandemic, it pivoted its business considerably restricted compared to pre-
self-organising teams to run projects to plan,
to create 145 million face masks for medical COVID-19 times. Offices will need to digitally
and to operate in an aligned way whether
staff10 demonstrating just how important adjust to embrace this new way of working.
working online offsite or offline onsite. Work
adaptability is.
is planned in small batches, with limited
The need to move work online has highlighted
amounts of ‘work-in-progress’ tasks. A
In the aftermath of the pandemic, all the need to digitally transform. Companies
notable feature of Agile is the morning stand-
companies will need to consider their ability which were able to quickly move to work from
up which enables teams to plan their day,
to change, not only in the short term but over home arrangements were able to adapt quickly
quickly communicate issues, remove blockers
the years of potential economic downturn and maintain momentum. This has allowed
and transparently share task status. These
that usually follow pandemics. Those with a these companies to act as advisors for others
methods are well suited to this challenging
good understanding of all the skills of their that were less digitally ready. Additionally,
time, enabling distributed teams to continue to
staff and which can mobilise diverse online companies that are digitally connected will be
co-ordinate and deliver complex projects.
teams quickly will be best placed to respond to able to achieve a collaborative and inclusive
economic stimulus. experience for all staff.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
Coworking hubs have become a common part However, a word of warning before rushing
of office buildings too. They provide flexible ‘head long’ into a new remote working model.
space for start-ups, entrepreneurs and small Companies must understand the effect that
companies with the ability to pick up extra more remote working may have on their
staff from the waxing and waning of larger workforce. Many companies attract staff
office tenants. With the COVID-19 crisis it through their values and culture practices (e.g.
is likely that people will not feel safe to use training, on the job learning and mentoring)
shared office space with people they do not which tend to be more tangible in a formal
know. CBD-based co-working spaces may office setting. Finding ways to continue these
therefore suffer. practices will be important for corporate
culture, particularly as more staff time is spent
The hub and spoke model or 20-minute away from the workplace.
neighbourhoods have been a re-emerging
trend as they take pressure off public transport Companies will have to ensure that their values
and can enable good urban design. This crisis are still understood and put into practice with a
is likely to further encourage this resurgence more distributed workforce. It is also important
of suburban office hubs where workers can that employers can understand the aspirations
access the higher quality office facilities near of the staff, help them grow, recognise
home when required. This would support leadership and maintain the support for their
local communities and provide an economic staff. Many aspects of corporate culture are
boost within these local areas. different in the digital environment.
“
THE NEW NORMAL FOR OFFICE
S P A C E A N D L A Y O U T
With lockdown restrictions starting to lift collaborative but simple measures and good
across the region, offices will start to reopen design should allow for these procedures to
and will need to think about how they can, be introduced in a way that still provides a Property managers
on a case by case basis, meet government positive user experience.
hygiene requirements in all areas. With a have a crucial role
vaccine estimated to be over a year away, and Managing arrival and circulation within the
the World Health Organisation cautioning that office will be the biggest challenge for offices. to play in enhancing
one might never be found11, it’s likely that Staggered start times will reduce demands
waves of restrictions could be in place for at on public transport and lifts. Hygiene safety and mitigating
least 12-18 months. stations will need to be easily accessible.
Access points to the building may need to be the pandemic. In
People will still want to go to a central reduced so that each point can be monitored
office to socialise and collaborate, but and information from all visitors will need the longer-term,
this might be more of an occasion than an to identify that they do not elevate risks for
everyday occurrence. Offices will need to others in the building. health and wellness
provide high quality, healthy and productive
workspaces to make them worth the commute Some offices may consider installing thermal will play a more
on a regular basis. imaging cameras to identify people with
elevated temperatures. If this occurs it should prominent role in
be clearly communicated, and staff should be
informing building
U N C E R TA I N T R A N S I T I O N P E R I O D
When offices start to reopen for the wider encouraged to check their own temperatures
workforce they will be required to meet before leaving home to reduce incidents on
government restrictions as well as providing arrival at the office. Although this measure design.”
workers the confidence that they are in a could be a positive move to give confidence
safe and productive working environment so that unhealthy people are not entering the Evan Choo
that they see the value of going to the office. building, if poorly managed this could result Executive Director, Head of Property
The restrictions have the strong possibility in a poor user experience. Management CBRE, China
of being uninviting, frustrating and non-
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P H Y S I C A L D I S T A N C I N G A N D A R E T H I N K O F E X I S T I N G S PA C E , AT
F L O O R M A N A G E M E N T LEAST IN THE SHORT TERM
In the workspace areas of offices, physical Modern office spaces are not just characterised
distancing will need to be adhered to, meaning by workspaces but are a collection of spaces
that desks may need to be separated or designed to accommodate different tasks,
every second desk left unoccupied. As this i.e. activity-based working. In the transition
will reduce the total occupancy, a program period these spaces will be difficult to maintain
will need to be implemented to control staff with their varied uses. Any potential loss of
numbers in the office at any one time. additional functions within the offices will
make them less attractive for workers and may
If desks are shared, then a strict cleaning influence people to favour working from home
regime between occupants will need to be instead of returning to the office. It is important
implemented. It is likely that this can be done for offices to take into consideration that
by the staff if cleaning supplies are provided, people who are returning to the office will want
however professional cleaning is still likely to to catch up with colleagues and be wanting to
need to increase to ensure the safety of staff. use communal and collaborative zones.
Offices may choose to zone their desks so that
if there is a suspected or actual case of the Some considerations that could allow for
THE COMMUTE
virus detected then the area required to be deep ‘COVID-safe’ communal zones include
With concerns about using public transport cleaned may be reduced. This would save costs providing movable furniture so people can
it is expected that there will be an increase and reduce disruption. space out and adding acoustic treatments
in active transport including walking and so they can hear each other well without
cycling. Councils, such as Sydney City, have Circulation zones could be made one way to sitting closely. Collaboration zones should
even increased cycleways to enable this. reduce congestion and these areas need to be be encouraged in areas that have good access
Offices may consider allowing for additional clearly marked to show suitable occupancy. to sunlight and have natural surfaces where
bike parks including bike cages in carparks. Signage and floor markings can be used to viruses do not live for as long.
Again, staggering start times will space out remind people about physical distancing and
demand for end of trip facilities however hygiene expectations. Meeting rooms and
additional cleaning of these may be required informal meeting spaces will also be signed
to keep these operational. to indicate maximum meeting numbers and
remind people of physical distancing policies.
The office should be set up so that it is easy for
staff to adhere to guidelines.
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D I G I TA L C O L L A B O R AT I O N - R E A D Y
Working from home will continue for © Daniel Swee
increased numbers and travel will continue
to be restricted. The increase in online
collaboration will require further digital
enhancement of the office. Improved internet
and advanced teleconference facilities (‘Zoom
rooms’) are going to be in high demand so
that centralised offices remain relevant and
enhance productivity. This transformation
will have benefits in the long term as it will
improve inclusivity and reduce travel.
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FUTURE OF OFFICES
“
Awareness is heightened, and in this
economy, there’ll be a drop in demand
for space, offices with the premier health
story will get the premium rent and get
the tenants.”
Prof. Joseph Allen
Harvard Business School
INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
Before COVID-19, office spaces were already It is also common for workers to share illness
undergoing positive changes to improve at the office via surfaces or air conditioning
worker health, wellbeing and productivity. systems. Physical distancing will give
Increasing natural sunlight and ventilation, workers the experience of a spread-out
decluttering entries, or improving circulation workspace. If this new seating arrangement is
areas and informal meeting spaces have all found to be more productive a return to dense
been welcome enhancements to many offices. workspaces is unlikely to be tolerated.
COVID-19 has elevated awareness of health There have been several office designs that
and wellbeing which will only increase look to provide a variety of spaces ranging
the demand for a variety of office features from communal spaces which focus on
including healthy building materials and socialising and discussion, down to quiet less
finishes, sit to stand desks, wellness rooms, stimulating spaces, sometimes coined ‘deep
plants and fresh air. The WELL buildings working spaces’, where people can focus and
standard will be even more in demand as it be productive.
provides a comprehensive, research based,
3rd party verified and holistic framework for
offices to address health and wellbeing.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
FLEXIBILITY
In the short term, economic uncertainty will ©©Danial
Earl Carter
Swee
increase the demands for flexibility. Office
design should allow spaces to be adapted to
meet tenant needs including downsizing if
required. Working from home will continue
in popularity and digital technologies will
be increasingly important requiring future
offices to increase spaces that allow for online
communication such as mobile office pods.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
Existing and new technologies can be used to Productivity and collaboration tools, including
manage challenges associated with the risk video calling and online workshop platforms,
of contagion, as well as support for working are already available and their adoption will
offsite and reductions in business travel. These become more widespread as more online,
range from touchless devices and doorways, connected teaming is required. Virtual and
productivity and collaboration tools, through augmented reality technology and purpose-built
to augmented and virtual reality platforms and labs can help enhance online designing and
digital assistants. complex problem-solving. As demand for these
digital tools increases, dedicated office spaces or
To address concerns about COVID-19 spreading IT requirements will need to enable their use.
through offices, entry to elevators, secure
foyers, meeting rooms and restrooms will be Digital and virtual assistants and artificial
enabled with motion sensors and in some cases, intelligence are another class of technologies
facial recognition systems. Relatively easy that may become more commonplace in a post
and inexpensive changes such as touchless COVID-19 office environment. The economic
tapware and dryers in rest rooms should be impacts of COVID-19 have, and will continue
considered early in an organisation’s return to to have, negative impacts on employment.
work program. More extensive systems to allow Organisations will manage the downturn by
for touchless offices will start to be introduced, downsizing and outsourcing, especially routine
especially in new builds and fit outs. functions. The shortfall in capability could be
met with emerging artificial intelligence systems
Digital tools can be used to understand and and online talent marketplaces like freelancer.
manage office operations - from booking spaces com and Upwork.com.14
to monitoring physical distancing or contact
tracing cases if required. These technologies are This pandemic has given a push to a more
likely to have a role in getting offices functional digital way of working, embracing new
again. This information also has the potential to technologies which will continue to increase in
provide valuable space usage data for ongoing adoption after the pandemic is over.
improvement of office spaces. Landlords should
consider if they have a role in providing this as a
© Arup service to tenants and supporting their capacity
to adapt more readily to changing needs.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
AUSTRALASIA PERSPECTIVE
Conclusion
Health, wellness, sustainability and flexibility
have been ongoing trends for offices for
many years. The coronavirus pandemic has
highlighted the importance of these attributes
and accelerated the move to implementing
these principles.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
AUSTRALASIA PERSPECTIVE
References
1. McKinsey and Company. (2020) Beyond 6. Institute for Employment Studies.(2020) 11. New York Post. (2020) CORONAVIRUS:
coronavirus: The path to the next normal. IES Working at Home Wellbeing Survey. WHO envoy warns vaccine may never be
[Online] available https://mck.co/2yjCM31 [Online] available https://bit.ly/3cPCznt developed. [Online] available https://bit.
ly/2Xj5t8D
2. A.Nortajuddin(2020).How Malaysia Is 7. The Guardian. (2020) Australia’s
Winning The War Against COVID-19. coronavirus lockdown to cost $4bn a week 12. Vouchercloud. (2019). How Many
[Online]available https://bit.ly/2zS9XeG in reduced economic activity – treasurer. Productive Hours in a Work Day? Just 2
[Online] available https://bit.ly/2LLqwvp Hours, 23 Minutes…[Online] available
3. A.Barker and H.Soisa (2020). Coronavirus https://bit.ly/2TpSilm
COVID-19 death rate in Indonesia is 8. J.Lim. (2020) 8 in 10 S’pore employees
the highest in the world. Experts say wish to continue working from home after 13. Arup Melbourne Workplace by HASSELL
it’s because reported case numbers are circuit breaker: Survey of 400 people. partnered with Arup
too low. [Online] available https:// [Online] available https://bit.ly/2WOkcJH
ab.co/2WMALWx 14. Younger, J. (2020). How Is COVID
9. Brisbane Arup Office survey 19 Impacting Freelance Rates, Pricing
4. J.Stowers.(2019) Want Top Talent? Give AndProject Flow? [Online] available
Employees the Flexibility They Seek. 10. M.Keck.(2020) These Australian https://bit.ly/2Tkklmf
[Online] available https://bit.ly/2XeLhoB Companies Have Pivoted to Making
Face Masks and Hand Sanitizer Amid
5. A.Kohll. (2019) How Your Office Space COVID-19. [Online] available https://bit.
Impacts Employee Well-Being. [Online] ly/2XeADhv
available https://bit.ly/2WMAUcx
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
Future of offices:
in a post-pandemic world
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
To establish how the pandemic may affect However, COVID-19 has happened in a very
the commercial property, we first need to different world to SARS, where the technology
understand how the outbreak has affected to support remote working has improved
economies across the region. drastically. Employers have realised that
working from home is possible and employees
Perhaps the most obvious impact is that the rise are questioning the need to travel to an office.
in unemployment as businesses are forced to lay It is therefore likely that some of those who
off workers. For instance, the unemployment are still employed will now permanently work
rate in Hong Kong hit 4.2 per cent in March, the from home, and some employers will choose to
worst level in 9 years – similar rises are seen downsise their leases or look for flexible office
across the region. As the coronavirus takes a space rather than long-term leases.
steep toll on the economy and the workforce,
many will not have jobs to return to. It is also likely that the outbreak will accelerate
trends that were already emerging. In Singapore,
This will likely feed on through to the for instance, the Urban Redevelopment
commercial property sector – in the short term Authority had taken steps to decentralise the
office rentals will almost inevitably drop. If CBD, creating a number of satellite business
we take the 2003 SARS outbreak as a guide, centres around the city3. This kind of trend can
commercial property rentals in Hong Kong and be expected to accelerate because people are
China dropped to historic lows in the aftermath likely to want to avoid cramming into public
of the outbreak (although they soon rebounded). transport and all working in a central location.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
East Asia is an enormous region with distinct Employers have now realised that
economies, levels of development and working employees can be productive when working
cultures. It is therefore impossible to generalise remotely. Many are observing that time
for a region of several billion people. saved from commuting almost equalises
Nonetheless, there is strong reason to believe the loss of productivity due to environment
that the pandemic will have a significant change, technical issues and lack of face to
impact on working styles. Here, we describe face collaboration.
some of the factors that commercial property
companies need to consider. C H A N G E I N AT T I T U D E S T O O F F I C E S PA C E
If there is a shift toward blending remote and
A C C E P T A N C E T H A T R E M O T E in-person work, this is likely to push corporate
W O R K I N G I S F E A S I B L E clients to reconsider the amount of office space
COVID-19 has already pushed millions they buy or lease.
of people in East Asia to work from home
and data suggests that this will increasingly SHORT TERM EFFECTS OF A RECESSION
become part of the normal worker’s day. It is It is now widely expected that a deep recession
predicted that 30 percent of people will work will impact the East Asia region, like the rest
from home multiple days per week within a of the world. Commercial property firms are
couple of years according to a new Global already seeing tenants ask if they can delay
Workplace Analytics4. rent payments, leaving landlords to cover their
mortgages and negotiate with banks.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
P E R S I S T E N C E I N W H A T ’ S Y O U R B I G G E S T S T R U G G L E W I T H W O R K I N G R E M O T E LY ? 20% C O L L A B O R AT I O N A N D
P O P U L A R I T Y O F O F F I C E S
State of Remote Report 20205 C O M M U N I C AT I O N
While the remote working trend will certainly
be important, it is likely that in many countries 20% LONELINESS
this trend is being overexaggerated. Ultimately,
work from home is not for everyone and 18% NOT BEING ABLE TO
many people in the region do not have a UNPLUG
suitable home working environment. It is not
uncommon to share space between three or 12% D I S T R A C T I O N S AT H O M E
four generations, where junior workers are
often living with their parents. For many, this 10% BEING IN A DIFFERENT
makes permanent remote working undesirable TIMEZONE TO
(see chart). T E A M M AT E S
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
FUTURE OF OFFICES
Different perspective
on the workplace
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
The COVID-19 pandemic’s most immediate PLACE: With decreased cash flow and
impact will be on office rental prices. investment appetite there likely will be
However, unlike earlier crises, where the opportunities for more retrofit projects,
market rebounded to ‘normal’ fast, we expect addressing ageing infrastructure and
the lockdown experience to have a more participating to urban regeneration.
significant impact on what offices are for in
East Asia. WELLBEING: Arup has developed modelling
and analytic capabilities that help illustrate
There is no reason to believe that offices will the risks facing clients and develop solutions
disappear after the crisis (indeed, in countries at different scales for possible immunity to
where lockdowns have lifted, workers are the pandemic, such as for example new ways
filing back to offices as usual). They also to quantify physical distancing to its people
remain popular in East Asia - a 2020 Gensler movement simulation software.
Research Institute Workplace Data Survey6
found that given the choice between home, Many of the technologies
T E C H N O L O G Y:
a coworking space, a coffee shop or a well- used in China during the outbreak weren’t
designed office-style workplace, the office is new. For years China has been an early
still the place people want to be. adopter in the rapidly growing sector of
proptech, tenants can benefit from insights
Ultimately the pandemic is a fork in the road. to rethink their interior layouts, optimise the
We have an opportunity to redefine what an number of desks as well as the use of meeting
office is, or choose to continue with the pre- rooms and staff areas.
existing model.
G E R M - F R E E O F F I C E : Arup has developed
In the following sections, we look at the with University of Hong Kong a plug and play
implications of several new types of office IoT antibacterial system that protects spaces
space which have recently started to emerge with smart air quality monitoring system
across the region. Today, we are still in the combined with VUV-based photocatalytic air
‘paradigm’ of traditional corporate offices, yet purification device.
the examples below provide some indication
of what the future could look like.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
When WeWork opened offices in Beijing Fun in spot these trends can work hand in hand with
2018 (an urban regeneration site popular among city planners to define new areas for growth and
BUSINESS ECOSYSTEMS AND SILOS
culture-seeking young people and tourists) it invest in regeneration projects. O L D W AY
marked an important moment in how office life Silos. You only understand a piece of the
is perceived in Asia’s biggest economy. People This is not an entirely new trend. Corporate customer interaction and are limited to your
at these sites are working in refurbished historic office space tenants were already renting co- direct interactions7.
buildings with an antique look but stylish working spaces in addition to their fixed office
interior, surrounded by unique and inspiring space for multiple benefits: VENDORS
architecture and an environment which reduces
the feeling of performing a job inside a regular
high-rise office building. Right across East Asia,
employees are beginning to experience what it Reduces ratio of fixed space (thus rental
is like to work away from traditional CBD’s and costs) to giving rental control flexibility.
CUSTOMER
‘standard’ offices.
Allows migration of fixed office to somewhere
At the same time, we are seeing opportunities less central for non-client-facing functions but
for workplaces located in smaller urban centres use co-working space in prime areas for client N E W W AY
or suburbs closer to where people live as people meetings. Ecosystem. You put the customer at the
express frustration with the traditional commute centre and you understand the whole
(not to mention fears of disease spread on Allows the management team to split and customer and all parts of the journey - both
public transport). This could potentially lead to work at different locations for risk control yours and your partners7.
different types of headquarters going along with during COVID-19 outbreak.
decentralised team structures towards a Team of
Teams structure (see graphic).
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
T E C H N O L O G Y
One of the most exciting trends which may Besides proptech, we can also expect a rise in
be accelerated by the pandemic is the use of surveillance and building entry technologies too.
‘proptech’ (property technology). This includes This could be popular in countries which have
apps, the Internet of Things (IoT), sensors and used track and tracing to reduce the spread of
robots to streamline property management - the COVID-19. It may also be backed by unions
COVID-19 outbreak brought the benefits of – reception staff in particular are exposed to
proptech into much sharper focus. potentially hundreds of people every day, so
technology which puts more distance between
For landlords and operators, proptech allows them and visitors will be welcomed.
them to monitor metrics such as occupancy ratio
and real-time energy consumption, as well as Expect to see technology entering all private
technical problems like abnormal temperatures and public spaces in the form of facial
or excessive power consumption. Meanwhile, recognition, thermal cameras and other sensors
tenants can benefit from insights to rethink at reception desks.
their interior layouts, optimise the number of
desks as well as the use of meeting rooms and Finally, further technology adaptation and
staff areas. Digital technologies make it easier integration will be required to cater for
for landlords and operators to monitor metrics, rising demand in spaces that enable remote
such as occupancy ratio and real-time energy collaboration, life-like immersive audio and
consumption, allowing to either help expand visual high-quality interactions.
revenue sources or save costs.
We can expect commercial property companies
to make significantly more use of these
technologies as a differentiator.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
G E R M - F R E E O F F I C E
The post-coronavirus office, especially building
lobbies, reception desks, and shared common
areas, will likely see more frequent cleaning
policies as well as features like antimicrobial
properties woven into fabrics and materials,
state of the art ventilation systems, addition
of UV lights for more deeply disinfecting the
office at night.
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
Conclusion
In this thought-piece we have investigated some Certain trends towards more ‘startup’
of the potential implications of the COVID-19 style cultures and decentralised CBDs had
lockdown on the commercial property sector the already started to emerge, and it is likely
East Asia region. East Asia was the first region that they will accelerate
to be affected by the virus and lockdowns, and is
also the first place to begin reopening. That said, we do note that remote centralised
offices will remain popular in East Asia – many
As this thought-piece has shown, the immediate employees prefer working at them or do not
impacts of the lockdown will be on office rental have a suitable place to do so at home. Reports
prices and we can expect a drop in revenues that remote working will become the ‘norm’ are
during the recession which is likely across the probably overblown.
region. However, unlike past recessions and
disease outbreaks, the return to the office and In many ways, the pandemic and lockdown
fast rebound for the property market this time offer the commercial property sector across
round is not certain. This is due to a number of East Asia an opportunity to pause and
interrelated factors: reconsider its current approach. Yes, traditional
offices are still going to be with us (although
In a region that was perhaps most sceptical they will look different), but there will also
of remote working, experience has now be important trends to a greater number of
shown that this model can work for many satellite offices, and new WeWork-style spaces
industries away from traditional CBD’s. Those who tap
into these trends stand to gain.
Technology now makes remote working
possible, unlike in the aftermath of the
2003 SARS outbreak
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
References
1. ttps://www.merchantsavvy.co.uk/remote- 8. https://www.theguardian.com/cities/2018/ 15. https://japantoday.com/category/features/
working-statistics/ mar/27/china-clean-air-indoor-quality- executive-impact/space-to-grow-gsk-seeks-
shanghai-cordis-hongqiao-filters to-boost-innovation-among-staff-with-new-
2. https://www.eversheds-sutherland. office
com/global/en/what/articles/index. 9. https://www.jll.com.hk/en/newsroom/jll-
page?ArticleID=en/coronavirus/ new-hk-office-pioneers-integrated-high-the- 16. https://www.dezeen.com/2019/10/11/slack-
coronavirus-returning-to-work and-wellness-concepts tokyo-office-interiors-japanese-engawa/
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
EUROPE PERSPECTIVE
Future of offices:
in a post-pandemic world
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
When COVID-19 reached Europe in January C O N C E R N A B O U T S O C I A L These changes do not signal the end of
C O N T A C T W I L L P E R S I S T
2020, most countries opted to impose commercial property in Europe. Rather,
A case in point is the showdown between
lockdowns which either banned all travel to they introduce a wide variety of new kinds
ecommerce giant Amazon’s French distribution
work, or strictly limited it as the virus spread. of working which will have important
centres and local unions with regards to
While lockdowns were imposed at different implications for how the sector works and
physical distancing in April.
times, millions of employees were asked to influence the kinds of investment decisions
work from home at one point or another during that commercial property firms make.
the outbreak.
P R O O F T H A T R E M O T E In this thought piece we establish how the
Remote working was not an entirely new W O R K I N G I S F E A S I B L E COVID-19 outbreak has affected Europe, then
concept in Europe – European Commission Tens of thousands of businesses now have first- explore some of the potential impacts this
data1 shows that in 2017 around 10% of hand experience of allowing employees to work may have on the commercial property sector.
employees worked from home at least some of remotely and this has largely been a success,
the time. But, as with so many other things, the thereby reducing concerns about remote
pandemic accelerated this trend. By mid-April, working that many employers held.
some four in 10 Europeans were working from
home full-time.2 P O T E N T I A L C O S T S A V I N G S
With expenses in everything from energy
It seems realistic to assume that remote to broadband usage to office rent reduced,
working will become a more established many organisations will see remote working
pattern across the continent as countries as an opportunity to cut some of their biggest
emerge from the initial crisis. This is because: financial commitments
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
FUTURE OF OFFICES
The pandemic
in Europe
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
including UK) had some experienced some Economic sentiment indicator (standardized) Employment indicator (standardized)
Industry Services Retail Construction
2 million confirmed cases of COVID-19
and more than 150.000 fatalities. This tragic 3.0 3.0
human loss was compounded by a historic 2.0 2.0
economic hit. As hundreds of thousands
1.0
of firms were forced to close temporarily, 1.0
-4.0 -3.0
The impact on the economy of the Eurozone JAN AUG MAR OCT MAR JAN JUN NOV APR MAR
will be severe – GDP is set to contract by 99 04 10 15 20 99 04 09 15 20
13% in 2020 (see graphs for more detail). The services and retail sectors have been hit hardest so far. The labor market is worsening quickly.
30
75
JUL DEC MAR OCT MAR
0 1 2 3 4 5 6 7 8
98 03 09 14 20
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
I M PA C T O F T H E PA N D E M I C O N O F F I C E S
AS A SECTOR IN COMMERCIAL PROPERTY
It seems highly likely that the pandemic countries. Even in conservative sectors like
will cause significant disruption to Europe’s finance, remote working has been working
© Joerg Hempel commercial property sector in the short term. much better than expected. In Germany the
How will this impact office rental companies government is aiming to include a new ‘right
and related businesses in the years to come? to work from home’ in its general employment
law, meaning that every employee will be
A major cause of disruption in the sector will entitled to work from home. Similar trends will
be down to inevitable job losses. Higher rates mean many firms opt for smaller head offices
of post-COVID unemployment will result in a as a large proportion of staff will only come to
decrease in headcount in many organisations work a couple of days each week.
– it seems likely that thousands of companies
will look to downsize office space (this is That said, some of the losses here may be
with the exception of certain sectors such as counteracted by an increase in demand for
public institutions, healthcare operators and spacious offices. At least until a vaccine for the
pharmaceutical industry). Many businesses virus is found, physical distancing measures
that rent office space will face bankruptcy and will likely compensate for the decrease in
close, while others will decide that permanently headcount at many firms. Companies will be
remote working is the right path for them. looking to put more distance between individual
workers, desk space will increase, and we may
What is more, demand for office space might even see a return of private individual offices
decrease in the post-coronavirus reality due or cubicles in some cases. For these kinds of
to a general upswing of people working from businesses, lockdown may not lead to a decrease
home. Working from home has now become in floorspace requirements at all.
normalised for many jobs in almost all European
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
trends which were already rising before the Table 1 & 2 Sourcce: Emerging Trends Europe Survey 2020
years (see table below), they had steadily 2 RETIREMENT/ASSISTED LIVING 4.37 1 4.26 2
declined relative to other typologies including 3 CO-LIVING 4.31 3 4.23 3
logistics facilities, data centres, student 4 P R I VAT E R E N T E D R E S I D E N T I A L 4.17 7 4.24 5
housing, serviced apartments and co-working 5 STUDENT HOUSING 4.25 4 4.06 9
facilities. Meanwhile the outlook for suburban
6 AFFORDABLE HOUSING 4.13 9 4.17 4
offices had been fair and this could increase
7 H E A LT H C A R E 4.21 5 4.09 7
post-COVID-19 as countryside and sub-urban
8 D ATA C E N T R E S 4.14 8 4.14 6
living is expected to become more popular in
the coming years. 9 S E R V I C E D A PA R T M E N T S 4.11 11 4.06 8
12 S E L F - S T O R A G E FA C I L I T I E S * 4.19 6 3.81 15
15 S C I E N C E PA R K S * 4.00 14 3.76 16
19 PA R K I N G 3.56 19 3.39 19
20 B U S I N E S S PA R K S 3.39 20 3.19 21
changes will mean for the 24 CITY CENTRE SHOPPING CENTRES 2.87 24 2.44 23
G E N E R A L LY G O O D = A B O V E 3 . 5 FA I R = 2 . 5 - 3 . 5 G E N E R A L LY P O O R = U N D E R 2 . 5
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INTRODUCTION A M E R I CPAASN D E M I C I N A U S T R A L A S I A M E A N I NEGAFSUTL A S I A EUROPE UKIMEA C O N TA C T
EUROPE INTERACTION
FUTURE OF OFFICES
From a mono-purpose
‘get-things-done’ place
towards a multifunctional,
flexible hub for
meaningful interaction
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
What is the real purpose of an office? When Rethinking the office in the face of the
N E W W O R K employees do not need to physically be in a pandemic (as well as with respect to the
One place to look is the ‘new work’ paradigm, place to do their work, why do these places bigger challenge of Climate Change) makes
as pioneered by start-up culture and companies exist? While different organisations will sense as each organisation will have to figure
like Twitter or Google and the related layouts approach this problem in different ways, out how much of its workforce should come
and office designs that have emerged in examples from around the world offer a to the office, why they should come and what
these organisations. tantalizing glimpse at the possible purpose of they would like to do in the office. Answers
offices in future. to these questions will of course vary
according to the industry, type of work and
If the primary purpose of an office is no the organisations culture.
longer a place for analysts to analyse,
R E T U R N T O I N D I V I D U A L I S AT I O N marketers to do marketing or salespeople
Another possible direction is the return of the to sell, this does not mean these places will
single-person office and ‘cubicle 2.0’ that comes disappear. However, it seems likely that they
with extra anti-viral components and materials will have to serve new and different purposes
(although this will most likely be temporary and to simply being a well-functioning and nicely
pass out of fashion once a vaccine or effective designed working environment. It seems
medication has been found). likely that offices will change from ‘the place
to get things done’ towards an ‘attractor’ for
employees and collaborators alike in the post-
pandemic world.
S H O W C A S E S P A C E S
Socialising, including doing sport and eating, and
collaborating face-to-face will remain the main
reason to come to the office in knowledge driven
and creative industries. Offices may increasingly
evolve into a hybrid of libraries and cultural hubs
for meaningful interaction amongst members of
Where might the office be
the organisation as well as with its collaborators,
partners, visitors and clients.
heading then?
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FUTURE OF OFFICES
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INTRODUCTION AMERICAS AUSTRALASIA EAST ASIA EUROPE UKIMEA C O N TA C T
If offices and working styles change, it seems This also means that the workday that started
likely that the management of flows of people at home continues inside a PBV – a Purpose
around cities will change too. This will have Built Vehicle – a rolling and well networked
important implications for strategic decisions mobile platform that can host up to 12 people.
that commercial property companies take. The commute thus becomes the time to have
meetings (face-to-face as well as remote) and
One likely change that will occur in many work on the fly.
European companies will be that employee
mobility management will become more We are also likely to see an increase in ‘work
important. As the perceived risk of infection fluidity’. As work becomes increasingly
is higher in public transportation compared to independent from time and specific location
biking or an (on-demand) shuttle with ‘built- - as well as from the physical presence of
in’ social-distancing measures, organisations colleagues - the lines between life and work
might consider the commute as part of the will continue to blur. It will be increasingly
employer safety and benefits package. common to do work whenever and wherever
employees wish – working from home one day,
We can imagine a future where corporate at a neighbourhood shared workplace the next,
e-bike fleets and on-demand work shuttles at the HQ the day after.
(like Google’s G-Buses in San Francisco but
smaller) or partnerships with ride hailing It seems likely that innovative commercial real
platforms (Uber, ViaVan etc.) which might estate companies will expand into new lines
become a popular way to decrease the risk of of business too. They may provide consulting
infection among staff. on home office design, the development of
micro-offices dotted around cities or mobile
workspaces that can be set up and taken down
in a matter of hours.
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Conclusion
In this report, we have investigated some of to companies, where culture is developed and
the potential implications of the COVID-19 work which involves face-to-face interaction
lockdown on the commercial property sector, continues. Company offices have existed in
with a special focus on offices. As we have some form or another in Europe for hundreds
seen, the lockdown is likely to accelerate of years - which suggests that they have more
several trends which were already underway value to businesses than just a place where
in the commercial property sector, including: people type on keyboards.
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Future of offices:
in a post-pandemic world
Start reading
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The global lock-down has effectively experience of mass collective home working
dismantled barriers that previously existed will likely lead to greater support from © Daniel Imade
in relation to working from home – namely employers and managers in future and, for
technology, trust and security. some organisations, a more embedded culture
of trust, transparency and flexibility.
First, the crisis has necessitated the
organisation of working spaces and areas at Thirdly, security concerns have been allayed as
home for many millions of people. IT systems companies test and prove their systems are safe
have been rapidly upgraded, and distributed and secure.
teams have been up-skilled to work remotely.
There is a fourth barrier, which is
Secondly, the concerns of employers and psychological. This is one that many home-
managers regarding trust have started to workers have had to contend with during lock-
fall away as they have had no choice but to down. This relates to the ability for workers
embrace remote working and flexible working to draw a clear distinction between work and
hours. The virus has placed responsibilities on life. The human mental and emotional state
large sections of society to care for members has been tested as we have had to find spaces
of their families and neighbours. This may within our homes from which to work.
have also helped generate more empathy from
employers with regards to the responsibilities
their staff have as parents or care-givers. The
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FUTURE OF OFFICES
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Working from home is a very different has been widespread recognition that fewer
experience for younger people living in shared trips have led to improved local air quality.
accommodation. Some younger workers are The widespread reduction in local, regional
sharing with several flatmates, or with family and international travel has also helped the
members across multiple generations. Many fight against climate change.
of those fortunate enough to have a dedicated
room to work in at home have multiple other Younger workers, millennials and now Gen
responsibilities to manage. Working from Z (entering employment since 2018), will
home is a skill that we have all had to learn by be especially impacted by the pandemic.
dealing with issues of self-motivation, social Some have had to move back in with their
isolation, loneliness, fear and anxiety –and parents. Others will have struggled with
by knowing how and when to step away and restricted access to outdoor amenities. It is not
switch off. implausible that they will reconsider where and
how they want to live and work post-COVID.
For a knowledge economy where the creation Many will look for more affordable housing
of value is no longer fixed to a physical space, in rural or semi-rural areas where there is
we will witness a continued diversification greater access to amenities and the countryside.
of working styles and patterns. New attitudes Workers with young children may also look
and behaviours regarding remote working are for more space, knowing that they are likely to
becoming normalised. Unproductive commuter be able to work more from home in future. A
trips have been temporarily stripped away better work life balance will compensate for a
from our lives, and a new appreciation has less frequent, longer commute.
been gained for the physical and mental health
benefits of a better and more integrated work- For all demographic cohorts, living further
life balance. Clear skies, quiet roads and visible from cities reduces the risk of catching highly
wildlife have been positive side-effects of the contagious viruses in future and could improve
situation created by the pandemic, and there quality of life in any future lockdown.
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a month during this crisis has raised questions. 40%
0 . 6 5 D AY S
Understanding how people have found the
experience of working from home may unlock 20%
new implications for future workplace decision
makers. Arup has developed a diagnostic
0%
survey that has uncovered positive attitudes
0 D AY S 1 D AY S 2 D AY S 3 D AY S
to home working and overall impact on
perceived productivity, along with difficulty in
switching off. Loneliness can also be an issue.
Early findings from the survey suggest a 20%
decrease in the number of days staff will spend
A F T E R C O R O N AV I R U S , O N AV E R A G E H O W M A N Y D AY S D O Y O U T H I N K Y O U W I L L W A N T T O W F H , A S S U M I N G
in the office post-pandemic with significant Y O U R C O M PA N Y A D O P T S A F L E X I B L E W O R K I N G A P P R O A C H ?
implications for the scale and purpose of our
future workplaces.
50%
P E R C E N TA G E
1 . 7 1 D AY S
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FUTURE OF OFFICES
Physical, location,
connectivity
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During the pandemic, many of us have come Smaller offices located near transport
to appreciate what we value most about interchanges and corridors sit within this more
conventional offices and workplaces - the buzz diversified arrangement, allowing a larger
“
and excitement of a busy office environment, the proportion of the workforce to live outside of
social interaction, the perks, the scheduled events, expensive city locations and reduce work-related
the chance encounters and mixed-use location. travel (and associated costs).
Many businesses will continue to want to attract
a mix of people co-located in one location to Employers will assess and prioritise the need Having thousands
build new alliances, cross-fertilise ideas and drive to travel with a new level of scrutiny, using a
innovation. They will have to work harder in broader range of considerations including cost, of bank workers in
future to ensure offices add value. carbon footprint, safety and physical and mental
wellbeing. A much larger number of business big, expensive city
Looking ahead, large offices are likely to be meetings, engagements and transactions will be
distilled into centralised hubs for face-to-face done virtually in future. offices may be - a
collaborative work, complemented by traditional
work tasks being carried out remotely. These To reinstate the workplace as a destination and thing of the past.”
offices and HQs will become even more fluid maintain its relevance in a post-COVID19 world,
as entities in future, capable of expanding and employers and developers will need to further Jes Stanley
contracting on demand. experiment with alternative modes of working. Group Chief Executive, Barclays
Agile, scrum working, and e-collaboration
Whilst smaller regional offices might not be between those physically located in the same
cost effective or sustainable as a solution, co- building and those working remotely, in other
working spaces and shared low-cost operations geographies and time zones will become
could provide options for staff located away from commonplace. Hybrid physical-virtual meetings
city centres who have a working environment and workshops will become standard, and
need that can’t be met in their home (e.g. a meeting rooms and collaborative spaces will
need for quiet, space, physical comfort, privacy, need to accommodate those joining remotely.
technical support). Further ahead we will likely see the use of
mixed reality in offices, combining the real with
representational avatars and holograms.
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© Craig Holmes
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The pandemic has forced organisations to work environments will include quiet areas,
dramatically accelerate what has been an creative spaces, formal meeting rooms and
aspiration of many Corporate Real Estate collaboration zones.
Services teams for years – the move to high
density collaboration. Looking ahead, the need The big tech firms have understood this for
to reduce operational costs will super-charge many years and are known for having invested
this agenda. heavily in creating university-like campuses.
They have done this to attract talented people,
Occupancy density (typically around 8 m2 per and to keep them in an adaptable environment
person in the UK) may reduce for some time that supports, facilitates and inspires
even after COVID-19. We could even see a interaction, collaboration and innovation.
reversal in the trend to share desks, with more
desks being allocated to assigned individuals It goes without saying that office spaces
until health concerns around sharing are will need to be inclusive, with health and
resolved. However, it is more likely that ways wellbeing an over-riding priority. Natural light,
will be found to manage shared desks so that fresh air, plants, plus access to a good food
employers can accommodate a workforce that and beverage are all a baseline requirement.
has more choice as to when they work and Openable windows in offices could be more
from where. commonplace, with cleaner air in cities owing
to more remote working, less traffic and more
There won’t be as much need for space to electric vehicles.
support focussed individual tasks, as a lot of
this can be done from home. Open, adaptable A further differentiator for offices, is the
workplaces that encourage agile work styles serendipitous conversation that they can
and collaboration will be needed more than facilitate – in corridors, cafés, exhibition
ever, as interior spaces are matched to the spaces and atria. Inspiration is something
activities that need to be supported. that offices offer – the ability to learn from
others and showcase the new. We also crave
The mix of activities are likely to change connection to something bigger, to align with
over time. Consequently, the curation and organisational values and “brand” – offices can
management of facilities needs to be proactive do this in a way that remote work cannot.
and constant. A range of reconfigurable
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Infrastructure, facilties
and technology
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Digital and smart technologies are already This will require more stringent facilities
making it easier for landlords and operators to management operations.
monitor metrics such as occupancy ratios and
real-time energy consumption, cost savings and It is also likely that people will walk and
improved utilisation. Facilities managers can cycle more in order to avoid using public
use technology to measure and adapt interior transport. More cycling trips which will require
spaces more quickly to meet demand and provision of additional space. But we need to
provide an optimised user experience. And for be mindful that different priorities could be in
the worker, new apps can direct workers to free conflict in this future. For instance, many of
stations from which to work. the measures that may help to prevent further
infection could increase carbon emissions (e.g.
In the wake of COVID-19 we will see yet extended systems maintenance and cleaning
more innovation in the “proptech” space: from regimes). This could run counter to the net
antimicrobial properties woven into fabrics and zero ambitions that organisations are adopting
materials, to the use of UV lights for deeper in increasing numbers. Consequently, owners
disinfection of office environments and high- and operators will be incentivsed to find
touch surfaces. sustainable solutions that don’t carry a heavy
carbon price – let alone a heavy price in terms
Looking ahead, it is unclear for how long of capital outlay.
concerns about contagion and hygiene in
offices will last once the pandemic is behind In the longer-term increased flexibility and
us. It may well be that residual concerns will modularity will be required to support scalable
fall away quite quickly once an effective emergency responses in future, ideally based
vaccine is made widely available (note the on circular economy principles in order to
assumption that this comes to pass). System minimise waste.
maintenance and cleaning regimes will
likely be bolstered for some time, with more
frequent and intense cleaning routines to
sanitise workstations between use of hot desks.
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Conclusion
It sometimes takes a shock to reboot an Perhaps it’s time, in the wake of the COVID-19
outmoded offer. The new offer will be driven pandemic, to recalibrate our understanding of
by generational and cultural differences and the workplace? A new vision of the workplace
expectations, transactional life-cycles and could be one in which we spend less time
property leases, regulatory measures and commuting and instead create more spaces in
opportunities afforded by new technology. our offices for creative collaboration, in place of
Workplaces will still need to offer the full range serried ranks of desks designed for independent
of spaces as working remotely (either from activity. After all, we all now know that this type
home or third spaces) won’t work for everyone of work can be done elsewhere.
all the time. But the demand for commercial
property and the commercial offer will likely It is clear that the brand values and culture of all
look very different in a post-recovery future. organisations are being tested by the pandemic.
A key to success will be to have a strong set of
As the post-COVID economy recovers, workplace principles in place that extends to the
employees may accept what employers offer home and other remote work locations. A new
given the widely predicted economic downturn. balance is possible.
However, businesses do need to look past the
immediate future. Many employees will have i BCO Thoughts on Office Design and Operation
experienced a very different mode of working after COVID-19, briefing note, April 2020
and will likely want to leverage and espouse the
aspects that work well. Far-sighted businesses C O N T R I B U T O R S
will prepare to support staff in providing new James Finestone, James Ward,
ways of working that also bring down costs and Marcus Morrell, Neil Rebeugeot,
increase business resilience. Paula Walsh, Rebecca Goldberg,
Stu Manton, Tristan More
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Paula Walsh
Property Leader, Global & UKIMEA
Josef Hargrave
Associate Director for Foresight