COVID-19 has brought attention to what the office is for and how important it should be in business goals and budgets, as well as the advantages and disadvantages of working from home.
The need for flexible office leases continues to rise, as numerous organizations remain unsure of what kind of work patterns they will implement for their staff in the long run.
What is the purpose of having offices? Isn’t lockdown proof that we can work remotely just as well?
COVID-19 has proven, much to the surprise of many, that a significant amount of work that normally takes place in offices can be done when they are closed.
Some people have discovered that working from home allows them to be more productive and enjoy the freedom of a more flexible schedule. Few people publicly express their dissatisfaction with their morning journey.
However, while COVID-19 has expedited the trend of working from home, it has also highlighted its limitations: in a knowledge economy, an organization’s success will still be determined by face-to-face interaction, cooperation, and serendipity. The office might become a critical anchor with universal flexible working.
“The workplace plays a really major part in how people view a business when you’re trying to attract, retain, and nurture top talent,” says Michael Holloway, general manager of property investment at Kiwi Property, one of New Zealand’s largest real estate firms. “You should walk into their area and see how they regard other members of staff rather than performing a videoconference job interview.”
According to Jim Coleman, head of economics at WSP in London, the workplace plays an even more crucial role in offering learning opportunities for younger staff. “It’s not formal training that helps people develop; it’s all the other relationships.” There’s still a lot to be achieved by working as a group.”
This will be different for different demographics, with a tension between the necessity for training among younger employees and the desire to work from home among senior staff.
“People who are just starting out in their occupations have a stronger need to be with other people since they are still learning and want the experience and social life that comes with it. When you’re older, you may have settled down and started a family.
A higher percentage of people will work from home, if only for the sake of resiliency. “We know we need to move swiftly to this model the next time a coronavirus appears,” Coleman adds, “which implies it has to be in play – at least in part – the majority of the time.”
“I don’t believe any company wants to return to the old way of doing things, thus it has a direct impact on space.”
How much Office space will Businesses require?
According to Colliers, a worldwide real-estate consultant business, demand for office space is predicted to climb 15-20% year on year in 2022 due to a strong hunger in the sector.
The reasons are not difficult to comprehend. Companies want to be able to obtain extra office space without making large investments, given the uncertainties of the last two years.
They will be more likely to commit real cash until they have a better notion of how large a staff they need to accommodate, which might take another six to twelve months.
Colliers, a Nasdaq-listed corporation with operations in 67 countries, is a professional consultancy organization that provides advice to real estate occupiers, owners, and investors with more than 25 years of experience.
“Technology businesses continue to drive demand. Startups, on the other hand, seem to have a stronger desire for office space. Much if Covid-19’s concerns linger, the year 2022 will be even better “Colliers’ Ramesh Nair is the CEO of India and the Managing Director of Market Development in Asia.
.”The yearly gross absorption in 2021 in India was 7% higher than in 2016-2018, indicating a robust rebound in occupier confidence.
Occupancy levels in key office micro-markets in the top three cities increased at the end of 2021 from Q32021, owing to a modest resurgence in demand and fewer occupier withdrawals, according to the report “According to it,
Conclusion:
For the office space market, the year 2021 has proven to be better than projected.
According to the global consultancy firm, all cities, with the exception of Bengaluru and Delhi-NCR, have exceeded the yearly average absorption of 2016-2018 in 2021.
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Rakesh
Mr. Rakesh is well-positioned, more then a decade of experience as a leasing expert and investor. He as a leasing specialist has a master’s degree in commercial marketing from a prestigious university. He believes in delivering expertise and experience throughout the process, including market study, tenant screening, lease signing, and interior design. He is also working with several prominent companies, like Byjus, the frost, anytime fitness, efl and schneider to ensure that each opportunity gets the most exposure possible.
