Our podcast episode that was published earlier this week was recorded in February this year and a lot has happened since then.
It was a Q&A session and none of the questions related directly to the events that have occurred since February.
Since lockdown, there is a whole new lexicon within the office space industry and a whole new raft of hashtags on social media.
Before 2020, we had never used the phrases ‘post-pandemic workspace’, ‘COVID-secure office space’ or ‘COVID-compliant workspace’ – these, and others, are brand new.
Other terms that have been around for many years, such as flexible working, working from home, hybrid workplace models and hub and spoke workspaces, are now getting a lot more mileage.
So, in this post and episode, we wanted to look at what office providers and operators have done in response to the pandemic – much like the products and services that they provide, they are flexible in nature and have been some of the first within the commercial real estate industry to adapt.
They have made a collective gargantuan effort to quickly respond to this pandemic.
Further information about specific providers and their responses can be found via our London directory of flexible workspace providers. Many of these providers operate in other parts of the UK and internationally, too, and these responses have been made globally.
Just some of the actions taken by providers and operators have been listed below:
- Protective screens installed at reception desks
- Thermal imaging cameras set-up for monitoring body temperature
- Fit-out adjustments to allow for greater spacing of desks
- Installation of desk guard screens
- Social distancing signage and floor markings in all areas
- Multiple hand sanitation units available throughout buildings
- Limits to the number of lift passengers at any one time
- Greater spacing within kitchen and break-out areas
- Contactless coffee machines in some kitchens
- Incorporation of more frequent cleaning cycles than usual – both day and night
- Regular fogging and deep cleaning of workspaces carried out
- Incorporation of ‘clear’ and/or ‘clean’ desk policies to reduce cross-contamination and to provide full access to handsets, keyboards, screens and so on for cleaners
- The disinfecting of air conditioning fan coil units
- Opening windows where possible to increase fresh air circulation
- Increased capacity for bike storage for those wishing to avoid public transport
- Increasing the number of, or installing new, charging stations for electric scooters and bikes, for the same reason as above
- Full and ongoing training of staff on the latest Government guidelines
Some of the new incentives and new products offered by workspace operators and providers include:
- Office timeshares where occupiers can pay to use workspace for just a few days per week or month
- Day office rentals
- Pay-as-you-go desk spaces
- Provision of Zoom Rooms and other tech-enabled facilities for video conferencing
- There are many ‘sign now and pay later’ deals being offered currently
- Other incentives including extended rent-free periods currently
Many providers are helping companies to fully incorporate hybrid workplace models into their real estate strategies. They are providing workplaces in regional, out-of-town locations that are easy to access for their employees who don’t wish to or can’t travel to city locations.
This means that the workforce can work from a variety of locations – home, a workspace near home, and in the main office.
Many of the above-listed actions have come at a large upfront cost, and the reduced capacities will have a longer-term effect for providers and operators.
Certain large providers have the leverage to renegotiate lease terms and many have sought legal protection in the areas of their business that are more exposed to reduced usage, others have paid to surrender some of their leases, however, many smaller providers and operators do not have the ability to take these actions.
Unlike retailers, workspace providers and operators in the UK have to pay their business rates bill in full, even when running at much lower occupancy levels.
This is a tough period for the office space industry and this black swan has certainly opened up a debate about the future of the office.
Some headlines are proclaiming that ‘the office is dead’ – but the office has seen much worse than this and has come back, and we believe it always will. The office is no doubt changing which is a healthy and progressive thing – the flexible workspace sector has already been changing the way companies use office space for many years so is well-placed to provide the solutions for the future of work.
Flexible working and homeworking is certainly nothing new – it’s been with us for decades and companies have incorporated it into their business models with varying levels of success, and the debate rolls on.
Jack Dorsey, the Co-Founder and CEO of Twitter, said recently that the company’s staff can work from home “forever”, but the founder of Netflix, Reed Hastings, says home-working is a “pure negative”.
There are many things to consider.
As Chief Executive of Toptal, Taso Du Val, states, “there is no one correct answer to the balance of remote and in-office work.”
We’re social beings; people crave the company of others.
Indeed, in the midst of a remote work environment, asset management firm, Bridgewater, has sought ways to allow team members to safely meet in-person — to facilitate collaboration and benefit from the richness of face-to-face interaction that was being missed by many.
They responded to the lack of connection by building a tented outdoor office space at their Connecticut base.
The tented space is fully wired and fits up to 50 people with ample distance between them, and is equipped with readily-available hand sanitiser dispensers and mandatory virus testing protocols for employees who choose to come on-site.
Armin Schulz is a Professor of Philosophy at the University of Kansas who researches representational decision-making and cognitive psychology. He points out some of the limitations of video conferencing – something that many of us are currently doing on a daily basis. He states, “I cannot know if you are happy or angry with me if I am not sure if your facial expression is triggered by what I said or by an unexpected tap of your leg. I cannot read your body language if all that I see is your facial expression on a screen.”
GDP has reduced globally and some of that has been attributed to an overuse of homeworking, although the data will have to be drilled down into post-pandemic as, of course, there are many other factors.
It cannot be argued that the reduction in commuting to the office has had a positive effect on the environment and on the budgets of many companies, too.
This may lead to companies working towards the hybrid workplace models whereby they can maximize the benefits of various modes of working.
It can be argued that certain tasks simply have to been done in-person – yes, a hackathon can be done remotely but a collaborative advertising campaign, for instance, needs to be ‘thrashed out’ and worked through in-person. As do certain launches, pitches, confidential meetings and many other tasks.
And, many of us really do prefer to separate work and life and this means separating the office from home.
Many are eager to get back to the office – it’s not just about the office per se, it’s about the commute (for some), the being in town amongst the buzz, the architecture of the city, the impromptu lunch or after-work drinks, browsing the shops on the lunch break, or trying the latest offering from Pret.
There are concerns about mental health, too – not everyone has the perfect home setup we see on Instagram (we’ve actually posted some of those ourselves on our Instagram feed), and trying to juggle working from home with the distractions of home life can have profound effects on stress levels and relationships.
Homeworking just isn’t for everyone – many start-up founders who started their companies on the kitchen table or spare bedroom will admit it took months or even years to make their routines efficient and healthy – and that was even with the added motivation of running their own business.
For now, the office space industry is in a tough spot – the UK government performed a U-turn on homeworking in September and asked that everyone do so for the time being with no indication as to how long for.
This is a major blow to office and coworking space providers that have spent vast amounts on making their workspaces COVID-compliant on top of reducing their capacities for social distancing, in the same way that those in the hospitality sector have.
Further to that is the fact that these companies don’t receive the same governmental support as those within the hospitality sector, as highlighted by the Flex Space Association’s letter of 24th September to Rishi Sunak .
We hope that the industry gains more clarity and support from respective governments and that we can all return to the office as soon as is safely possible so that we can all find out for ourselves what the future of work will look like.
An audio version of this post be found on the link.