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Question I’m pondering: how will office real estate be impacted after COVID-19?
Prior to COVID-19, managers wanted employees local for the trust factor and team building factor.
During COVID-19, we are proving in many cases these requirements weren’t always necessary, as employees have worked from home now for almost a month in many places.
During COVID-19, we are proving in many cases these requirements weren’t always necessary, as employees have worked from home now for almost a month in many places.
People are getting their work done despite not being in the office. In some cases it may be more productive (no kids), in some cases it may be less (kids).
When managers thought they couldn’t trust their employees, they are finding out that their notions may have been misplaced.
When managers thought they couldn’t trust their employees, they are finding out that their notions may have been misplaced.
After COVID-19 passes, some people may choose to work in an office but I believe most would choose to work at home most days if given the choice. Just my biased opinion.
I think it is going to be hard to ask employees to come in to the office every day after working from home for 2-3 months. This also may be completely wrong. I believe good companies will support flexibility in their employees’ lives as long as they do what they say they will do.
So what becomes of office space? I am starting to think that offices could become places for meetings only and become more like country clubs - you pay your dues for the month for access to meet, eat, do deals, congregate for big events, and do the rest of your work from home.
Offices serve two functions: 1) the “home” for businesses & 2) a place to gather and meet as teams. Some businesses can’t move (industrial). But some businesses’ “homes” just became their employees’ living room and may never return.
But physical meeting space - closed door conference rooms, or open coffee meetings - will still be needed by companies. Some things just can’t be covered or some over Zoom.
It is more of the Spaces model than WeWork. But the opportunity I see potentially occurring is helping office landlords transition their space to more of this “club” type feel to keep pace with changing times.
Once leases turn over, office landlords should be wondering what the highest and best use of these spaces should be. Just a blank floor space? Or a meeting/gathering space only? It will be incredibly interesting to see how companies leasing space respond to COVID.
Will companies still demand as much office space? Or will their needs change? Or will their needs disappear?
All of this said, I may be totally off base. So, do offices remain the same as before Covid-19, change mildly, or change drastically towards country club type memberships for meeting space only? I’d love to hear your thoughts!
