Businesses reviewing space needs ready for return to work

Businesses are rethinking their property requirements as part of a wider review of plans to return to work as they await a series of big announcements from the government.

Freya Cross, Business and Corporate Manager at The Deep in Hull and Chair of the Flexible Space Association (FlexSA), said her sector is receiving plenty of enquiries which point to a change in demand, but the immediate trend remains wait and see.

Mrs Cross said: “From our position at the coal face what we have seen with business performance is a mixed bag. Some businesses have performed well during the pandemic, some have stayed at about the same level and some have seen a decline.

“There has been a significant change in demand as businesses have reviewed their requirements but we are yet to see the impact of that – whether there will be an overall reduction in office space or a change in the way people acquire and use office space.

“But studies show that during the last five years the flexible space market grew by 50 per cent, and we expect that expansion to accelerate as a result of the fall-out from Covid-19.”

Mrs Cross said she is hoping for more clarity from forthcoming government updates on lockdown restrictions and unemployment figures due next week, with the Budget also looming.

She said: “All we can be certain of at the moment is that everything is changing. Demand for general office space is declining but we expect a big move around March and April as restrictions are lifted.

“We expect to see more leasehold property coming onto the market as businesses look at issues around productivity and the social needs of their workforce. So many people are desperate to get back to work but some businesses have contracted back to working at home and will probably stay there.

“At the same time we have had more enquiries from people who are setting up on their own, including for virtual office space, which is what we would expect at a time of high unemployment. So we have seen positivity and negativity and as an industry experienced in dealing with change we have the flexibility to handle that.”

FlexSA members across the UK reported a decline in demand for office space during 2020, driven by businesses seeking to reduce costs during the pandemic, and changing office needs with staff expected to work from home if possible. Many flexible workspace operators are now reporting a growth in enquiries, as businesses start to plan for the future with more confidence.

Mrs Cross said: “There is no doubt that many employers and their staff are eager to get back to work, and our priority is to enable them to do that safely and to connect with colleagues and clients who for whatever reason are unable to be in the same room.”