Office Spaces, Three Years On from COVID-19

This month we update our take on the article ‘How COVID-19 is going to impact office spaces’, three years on from COVID-19.

Published at the end of 2020, this previous article discusses the potential impacts COVID-19 may have on office spaces. We predicted that working from home wouldn’t become the standard. Despite this, we stated that it would be more than just a short-term situation for much of the workforce.

Office, Hybrid, or Remote? 2019 vs 2024

The Office for National Statistics have shed light on working habits since COVID-19.

• Before 2019, 4.7% of UK employees were working from home.
• By 2020, UK employees reported to be working hybrid was at 46.6%. 86% of these attribute this shift directly to the pandemic.
• In 2022, 13% of UK employees would work from home full time. And 25% of employees would have adopted a hybrid working pattern.
• In 2023, the amount of employees working remotely full time decreased by 14%, leaving 16% of the UK workforce working exclusively from home. Employers shifted back to pre-pandemic working patterns in 2023 – making 40% of workers return to the office full time. However, 28% of the UK workforce remain hybrid workers.
• In 2024, 14% of the workforce remain fully remote, and 26% hybrid work. You can find a broader breakdown of the statistics on remote working in 2024 here.

What could this mean for business value?

Whilst a lot of companies have adopted a hybrid working pattern, many are retaining their existing office infrastructure. However, this is likely to be reviewed as leases come to renewal, or companies are advised at renewal or break points. As more office staff adopt a working from home culture, there is less of a requirement for businesses to keep their expensive city centre offices. Thus, reducing rent costs for many businesses.

As more city centre offices have become available, companies are taking advantage of better deals and accommodation, and moving out of older converted buildings that are no longer fit for purpose. We believe that there has been a reduction of cost per ft² for premium city centre offices. And as a result of this, we think that secondary offices in the suburbs are likely to suffer the most.

Modern Office Space Wanted

Some empty office spaces may have become unprofitable to own, lease or rent; and their layout may also be regarded as outdated following the sudden change in workplace culture. Despite this, it is important to differentiate between the lower demand for office buildings and the demand for high quality office spaces. Many office buildings are 60s, 70s, and 80s built, rendering them less energy efficient and less sustainable long-term. With rising environmental standards, it is certain that office blocks like these will be legally obsolete within the next 20 years. High quality office spaces, built with sustainability and productivity in mind, still retain demand. Especially in large cities like London, Birmingham, and Manchester.

Empty Office Spaces Locally

Bristol has been tackling the issue of vacant office space by converting old and disused office buildings into flats. A development plan to convert the five-storey office block College House on College Green, was submitted to turn it into 28 homes. This sentiment has been echoed by the Bristol based group, Abolish Empty Office Buildings. A group that endeavours to buy and convert empty and derelict office buildings into affordable homes.

At JS Reakes, we tailor our services to your requirements. Our expertise comes with over 30 years of experience in commercial property. We are based in Bristol and cover Wales and the Southwest. Email us at [email protected] to get in touch!