How businesses should prepare for changes in the commercial real estate sector Wybo Wijnbergen, Co-founder and CEO, infinitSpace
What to expect in the next five years
T
The rise of flexible workspace operators over the past decade tells us that the model is nothing new, and certainly not a result of the pandemic. The difference now is that hybrid models have become firmly established as the new normal. As businesses establish their own working patterns, the design, build, functionality, management and marketability of a commercial building will be driven by the growing demand for flexible working. The workspaces of tomorrow will be focussed on providing an enjoyable experience, rather than simply providing a basic office setup consisting of a desk, chair and a communal kitchen area. Offices will become hubs that bring people together on those days that they choose to venture into the workplace, offering perks that employees won’t find at home – whether that is collaborative spaces or after-hours fitness classes and wellbeing workshops. Many enterprise tenants will no longer be satisfied with the traditional workplace set-up. The design of a building; the technology that governs the use of the space; the sense of community; the meeting rooms; and the additional networking opportunities – these will all be critical. Positively, businesses in the UK are already preparing for this eventuality. A recent Knight Frank study of UK businesses found that 81% believe they need to implement a new workplace strategy post-pandemic, and just shy of half (47%) envisage their real estate strategies to include a
he Covid-19 pandemic had an immediate and widespread impact on the commercial real estate (CRE) sector. It took just a matter of days for offices, retail outlets and hospitality venues to close their doors in March 2020 as national lockdowns were implemented. Many commercial landlords were served lease termination notices as businesses shifted to a remote-first model, unsure of when they would be able to return to the workplace. Yet the sector proved its resilience: in Q1 2021, Savills reported that £10.5 billion was invested into UK commercial property, a figure that is 112% above the total turnover recorded just nine months prior in Q2 2020. On reflection, much has changed over the past 18 months. While some businesses were already aware of the benefits of a more flexible working model – not least its positive impact on employee satisfaction and productivity – the pandemic has catalysed this trend. In fact, 30% of workers today say they would prefer the option to choose when and where they work over a pay rise. This has implications on those providing and managing office spaces across Europe: the trends that have emerged in this time will dictate what the future holds for the industry. Here are just a few examples of what commercial landlords and businesses renting office spaces can expect in the coming years…
20 europeanbusinessmagazine.com
Wybo Wijnbergen Wybo Wijnbergen is the Co-founder and CEO of infinitSpace, a company that enables commercial landlords to easily create and run a flexible office space under their brand and conditions. Prior to launching infinitSpace, Wybo was a Managing Director at WeWork, where he helped oversee the company’s expansion across Western Europe. greater amount of flexible, serviced or coworking space. With that in mind, there is another trend that will unravel post-pandemic: the growing number of flexible workspaces available on the market will no longer be dominated by existing operators like WeWork and The Office Group. Instead, we will increasingly see commercial landlords converting traditional office buildings into flexible workspaces that meet the needs of today’s businesses and their employees, whether by forging ties with flex space operators or going it alone. Right now, for instance, around 6.9% of total office stock in central London
