It’s the new real estate paradigm for the return to the office in September
Owned or rented, the trend is towards office spaces adapted to new working models and to the “new normal”: more flexible, collaborative and wary. The increase in teleworking and the greater availability of offices have led to an adjustment in the prices of these assets. However, with the “return to the office”, this market could be reactivated, but its evolution will depend on the economic recovery and new working models.
BY RRHHDigital, 04:45 – 27 August 2021
Telecommuting is here to stay, but not as a one-size-fits-all format. Faced with the return of summer, one would think that many companies will resume their activity in person in the office. Although this decision is conditioned by the evolution of the current fifth wave of the pandemic and the progress of the vaccination campaign, by September, many companies favor resuming face-to-face work, even through a hybrid model. , which seems all to indicate that it is the main format, at least in Spain.
Since the onset of the pandemic, a large portion of businesses in Spain have been forced to establish telecommuting as their usual work format, a situation that has left offices and head office virtually empty. In this context, some companies have kept their rental contracts or their head offices owned, while others have freed up their usual workspaces to reduce expenses. Now, when returning to the office, whether owned or rented, the trend is towards spaces adapted to new work models that are proving to be more flexible, collaborative and difficult. On the other hand, there are companies, in particular startups or SMEs, which opt for the rental of hot offices or workstations in coworking spaces, which offer the possibility of having flexible management of spaces.
What is clear is that, one way or another, the office market is reactivated, but how is the evolution of these assets after the pandemic? Experts from the Valuation Institute analyzed the office market and business behavior for the month of September, highlighting some trends to expect when returning from vacation:
Price adjustments whose future will depend on the economic recovery: the increase in the availability of offices last year, caused mainly by the confinement and the rise of teleworking, in addition to the new real estate offer which is developing Seen in large cities like Madrid and Barcelona, this has led to an adjustment in the prices of these real estate assets. Especially in the more expensive areas of the main cities. And it is that with the forced introduction of remote working, some companies, especially small and medium-sized enterprises, have left their desks to save money, and now, in some cases, they are opting for others. types of spaces such as coworking or hot offices. Looking ahead to the final months of the year and with the “back to office” in September, we can expect this market to reactivate. However, its real evolution will depend on the economic recovery and the continuity over time of the trend towards teleworking. In this sense, the recovery will not be the same for all areas. In fact, these offices adapted to the new post-pandemic context, which meet the new criteria of sustainability and hygiene, could experience a faster recovery, even attracting the interest of investors. Interest in offices in major cities continues: while it is true that everything seems to indicate that the traditional office model could undergo adjustments, these spaces located in the center of cities continue to attract the interest of investors. In fact, during the first months of the year, both the central area as a whole and the main business centers of Madrid and Barcelona concentrated a large part of the demand and investment in this type of asset. Indeed, large companies, which generally set up their headquarters in these areas, will continue to retain their offices as important assets for their image and reputation, as well as spaces to bring together their teams or receive clients. More collaborative, flexible offices adapted to the new work model: the pandemic has completely changed the methodologies of work and communication in the company influenced, mainly by digitization. And with that, the need has also arisen to redefine workspaces for the return to the office. Now, thanks to the hybrid work model that allows the rotation of staff in person, the trend in offices is towards more diffused and open spaces with greater distance between tables, rotating positions, telephone booths for holding meetings virtual individual for the rise of teleworking. , and of course, compliance with all safety and hygiene measures to ensure the health and well-being of employees. Thus, modern offices and collaborative spaces are starting to appear in the new office concept. In this sense, it is also important that the office is an attractive place for its employees, who have already become accustomed to working from home, therefore, providing a space that encourages creativity, communication and collaboration is essential to maintain the well-being and productivity of teams. Coworkings, hot desks and other shared work models, among the protagonists: many companies currently use a work model in which the models rotate to be a few days at the office and others at home. For this reason and to respond to these new situations, new solutions have emerged such as hot offices, which consist in renting part of their offices to third parties to make profitable the excess space available to them for employees who telework and thus reduce real estate costs. On the other hand, to meet the demand for more space in cases where it is necessary, it opts for the rental of hot stations or specific areas in coworking environments to locate professionals in teams. The latter format is growing, especially with startups and SMEs because of the flexibility it offers to be able to rent and pay only for the necessary positions, which can even have workspaces in different geographical locations. In addition, this implies a reduction in the efforts and expenses of the service and / or maintenance of its head office for the company since all these concepts are generally included in the rent of the space.
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