The office market has not stopped due to Covid-19. The main change is that tenants have changed their priorities. This three-month phase where the majority of people were working from home and using modern communication technologies, has introduced companies to new possibilities for the team management. A survey conducted by BNP Paribas Real Estate, the international consulting company, made among 100 companies of various specialisations and sizes has revealed several clear trends.
For the vast majority of the tenants, cost savings are currently the main priority. This is why a large number of them are considering reducing the office space. The tenants considering to release part of their space to the landlord or are planning to sublet 15% to 20% of the space to other companies. This is, among other thing due to the fact that up to a third of employees plan to utilise working from home in combination with regular meetings in the offices. "Most of the people we contacted agreed the socialising element is essential for the smooth running of the teams. The key points are motivation, sharing and last but not least, supervision. Based on this format, the office will gradually change into place for meeting and cooperation and the work itself could then be done from home," explains Lena Popova, Head of Office Agency team in BNP Paribas Real Estate Czech Republic and Slovakia. Another new trend which is growing rapidly is the desk-sharing.
The change in how companies function is also reflected in the requirements of tenants on developers or landlords. As the survey showed, the priority is the flexibility in lease conditions. This is not only in the possibility to adjust the size of the working area but also in the length and parameters of the lease. Instead of the usual 7 to 10 year lease the tenants are now insisting on 3-years, or up to a maximum of 5-year contracts. This protects the companies from any further market change.
In addition to cost savings, the companies who took part in the survey are also intensively addressing the health and safety of their employees. They are now thinking far more about how to improve the workspaces with safety and security technologies. In addition to regular disinfection of the office premises and now standard disinfectant for the office users they are looking at ideas such as non-contact door opening, thermal cameras which detect the body temperature of people in the workplace and antimicrobial coatings which protect surfaces and prevents further multiplication and spread of bacteria.
"Fewer entities are currently looking for new premises than before Covid-19. However, the market has not frozen. We're solving several subleases and renegotiations ourselves where companies are sometimes discouraged from moving, not only by the constant lack of quality space on the market but also by the ever-increasing price of construction work associated with adjustments to the interior,” adds Lena Popova. According to her, the most positive news so far is that no changes have been not recorded yet regarding the development of already planned construction.
