Companies are likely to stick with their
traditional city centre offices once the coronavirus pandemic passes, according
to the team at real estate investment house Mayfair Capital – even if staff
spend less time in them.
Tom Duncan, Mayfair Capital’s senior
research analyst, said the home-working necessitated by the UK’s Covid-19
lockdown has shown that companies can “maintain or improve output” without
staff being in an office. But although the role of the office is changing, its
significance is not, he added.
“The purpose of the office has changed
from merely being a place to work towards being a place to collaborate, to meet
and to learn,” Duncan said during a Mayfair Capital webinar.
“It is for that reason that we believe
offices that have evolved their roles will remain much needed. A widespread
shift towards more flexible working practices is likely after the pandemic, but
working from home will not become the new normal. Employee surveys show that
people still want to be based in the office at least part of the time, and it’s
the freedom of choice over where and when they work that they value the most.”
In five years, Duncan said, “a typical
office worker may spend two days a week working from home and three days a week
in the office, with their location dependent on their tasks”.
That will drive demand for offices in
accessible city centres, he added. “City centres offer a holistic mix of
employment, retail and leisure uses, and clusters of clients, industry colleagues
and friends. They will thus be more appealing for most workers compared to
suburban office markets even if they involve a longer commute.”
Other investors have suggested demand
could take a different turn. The team at McKay Securities, for example, said
recently that regional office markets in the South East stand to benefit “if
occupiers decide to decentralise in order to reduce exposure to congested
public transport”.
Mayfair Capital’s Duncan, however, is
sceptical: “We may see some large corporates adopt a decentralised model, with
a city centre head office supported by a number of suburban hubs, but by and
large city centres will see the strongest demand.”