The commercial real estate sector has been upended by the ongoing pandemic as millions of professionals continue to work from home.
Although some offices began to slowly bring employees back in late summer and early fall, the way they operated had to completely change. This meant distancing from colleagues, wearing face masks and increasing sanitation protocols.
Knight Frank India found that the second quarter of 2020 was the worst point of the office industry, where takeup saw a decline of 27%.
This was particularly difficult for coworking spaces that had long prided themselves in open, high-density offices built for networking. In fact, a Cushman & Wakefield report found that demand for flexible offices could drop by 60% year-over-year in 2020.
However, a survey from Regus has found that companies who are looking to cut down on overhead costs and still provide office space for employees will turn to small, flexible workspaces.
These offices take on the cost of rent, electricity and management, so companies who have been hit hard by the pandemic can work to build back their losses.
This will be helpful for employees who have found working from home to be a challenge. Many have expressed the need to come into an office either due to a lack of resources at home, or simply missing daily interactions with colleagues.
Still, remote working does have the benefit of cutting out stressful commutes and allowing employees to save costs.
That is why some companies are seeking to adopt flexible offices closer to employeesโ homes and outside of major cities.
