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Future of Offices: in a Post-Pandemic World in Just a Few Months COVID-19 Has Changed How and Where We Work, Forcing Different and Flexible Ways of Working

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Future of Offices: in a Post-Pandemic World in Just a Few Months COVID-19 Has Changed How and Where We Work, Forcing Different and Flexible Ways of Working WE SHAPE A BETTER WORLD Future of offices: in a post-pandemic world In just a few months COVID-19 has changed how and where we work, forcing different and flexible ways of working. As we start to settle into a new normal, we look at the short and long-term trends and developments that will impact the kind of workplaces we will inhabit in a post pandemic world, not to mention the opportunities these present. In this report we look at some of the arising themes and thinking from our Property teams around the world. Each global region is emerging with a fresh set of experiences and insight around what impact this is likely to have on us all. COVID-19 has accelerated pre-existing trends in the commercial property sector – from health and wellbeing to activity-based working. 2 AMERICAS PERSPECTIVE Future of offices: in a post-pandemic world 3 INTRODUCTION COVID-19 has accelerated a range of pre- change in its wake. The commercial property existing trends in the commercial property sector has not been immune to the accelerated sector around health and wellbeing, activity- impacts of COVID-19 and the Foresight team based working, flexibility and the drive for in partnership with our global property team better space utilisation. Sustainability, smart has set out to identify what the new normal buildings and the digital workplace are also will look like for commercial property post reshaping the commercial offer. Taken together, COVID-19. these trends and developments will profoundly impact the kinds of workplaces likely to be The pandemic has generated many questions needed in a post-pandemic world. for commercial property owners, developers and tenants alike: what is the role of the In this thought-piece we explore how workplace? It is to be expected that some of workplaces in the Americas could change the changes we are currently experiencing are in the years following the lockdown and temporary in nature while others will leave look at developments in how people may lasting impacts. work together both remotely and in the same physical location. In this thought-piece, we first describe some of the ways that work in the Americas has The global pandemic has exposed the fragility changed under the pandemic. We then delve of many of our systems and created a high into the implications of these changes for the degree of uncertainty and potential for great commercial property sector. The commercial property market in the Americas will look very different in a post COVID-19 future. 4 FUTURE OF OFFICES Ways the pandemic changed workplaces in the Americas 5 Today’s pandemic is not the first time a 1.THE ACCELERATION OF DIGITAL TRANSFORMATION global disease has ground business to a halt in the Americas. The so-called Spanish Flu of 1918-20 brought business to a standstill in 2. ADOPTION OF many American cities. In New York City, for REMOTE WORKING instance, the mayor introduced new laws which forced businesses to stagger working hours in 3. TRAVEL QUESTIONS order to reduce the chances of infection. The coronavirus has had an equally disruptive effect on business. What changes has it 4. NEW IDEAS ABOUT THE PURPOSE OF THE OFFICE introduced, and how permanent will they be. Here are eight key changes that have occurred in working life in the Americas: 5. A RETHINK OF OFFICE SPACE 6. SURGE OF VIRTUAL COLLABORATION 7. OPTIMIZED OFFICE SPACES 8. HYGIENE CONSIDERATIONS 6 1. THE ACCELERATION OF Are we going to be travelling less DIGITAL TRANSFORMATION for meetings? From physical to virtual spaces, there is an Consideration for increasing number of platforms that make up Do we need as much conference room space? what we can consider to be the ‘workplace’, the acceleration or the space where we perform our work. The What are the types of work activities that can number of platforms to perform work tasks of digital best be performed at home and in the office? have evolved rapidly as our society becomes more interconnected through digital and transformation What is the role of the office? To promote an physical platforms. The COVID-19 pandemic organization’s culture? To attract talent? To has only accelerated the demand for remote meet and form social bonds? To host clients? tools that allow for virtual environments. Will flexibility on remote working policies Many view the working conditions during attract more talent? COVID-19 lockdowns as demonstrable proof that remote working can be successful, Will candidates’ living circumstances be taken thus accelerating the trends of digital into account in the hiring process? transformation. Staff have had to quickly upskill on a variety of digital platforms, and Will employers offer home utilities coverage as this new fluency will likely influence our part of benefits packages? ways of working and our physical workspaces moving forwards. Who will be responsible to ensure that staff have an ergonomic working space at home? This factor will inevitably change the role of current physical working environments and How will the office work culture be will increase the demand for technological carried online? developments that can help us track and manage resources and reduce capital and operational costs. 7 2. ADOPTION OF REMOTE WORKING 3. TRAVEL QUESTIONS Millions of workers across the Americas began The challenge of getting to and from the office working from home during the pandemic. after the COVID-19 pandemic recedes will Remote working was already a growing trend likely affect how often people go to the office. in the US, with five million people (3.6% of Those who can walk or cycle to work might the U.S. employee workforce) working from still consider working from central offices, but home at least half their work week in 2018. those who have long journeys or commutes “We’ve seen that require public transportation might become Remote working reduces operating costs accustomed to working from home or in an two years’ as “…a typical employer can save about office space close to their homes. $11,000 per year for every person who works worth of digital remotely half of the time,” according to Global 4. NEW IDEAS ABOUT THE PURPOSE Workplace analytics. Meanwhile, staff have OF THE OFFICE transformation the ability to choose to work in locations with The office space was once centred around lower cost of living or move to retirement- access to shared infrastructure: copy machines in two months.” friendly locations like Florida. and files, then computers, printers, and network connection. Now, with cloud storage and the Satya Nadella Remote working can happen in a variety of move to paperless workplaces, the office is Microsoft CEO modalities from all staff working remotely, to coming to be seen as a place to form social a percentage of staff remote, or have staff work bonds, create corporate culture, host clients, remote on specific days, a hybrid between and attract talent. working in the office and at home. There could even be an adoption of working from home 5. A RETHINK OF OFFICE SPACE on specific days of the week, such as ‘remote If half of an office’s employees are going to Fridays’. If more personnel work from home be working from home on any given day, then one or two days per week, their personal desk tenants may not want to pay for an office filled usage might be reduced. This could encourage with unoccupied desks. This may result in the business owners to turn to the use of hot reduction of individual office spaces, making desking or hoteling, potentially balanced by companies reconsider their office layouts in the additional space dedicated to office amenities long term and shift away from assigned spaces and increased footprints of each desk to enable for individuals. physical distancing. 8 Depending on the types of work that staff need 7. OPTIMIZED OFFICE SPACES to perform, and given the high cost of rent The pandemic also presents an opportunity in major cities, companies might not be able to accelerate the use of smart building to justify the cost of square footage. Besides technology, which will ensure workplaces are considering working from home as a tool for designed in such a way as to reduce the spread attraction and retention of talent, it can become of airborne disease. Advances in building a strategy for saving money while reducing the operating systems, smart components, and cost of real estate. sensors are enabling spaces with a high degree of flexibility and adaptability. These can also 6. SURGE OF VIRTUAL COLLABORATION help to support optimization of space use, The development of ubiquitous technology has workspace allocation, and physical distancing. allowed organizations to perform collaborative tasks virtually. Mobile devices have similar 8. HYGIENE CONSIDERATIONS memory and computing power as desktop PC’s, Post-pandemic, touch-free technology in offices allowing us to work away from our desk. There will become increasingly important and could is improved fluency with virtual and platform- potentially be adopted in elevators, security based collaboration tools by staff, especially access, etc. During periods of outbreak, some those of younger generations. Technology like buildings may implement health screening mobile virtual desktops may replace bulky processes at their security gates. This can laptops and computers, enabling mobility inside manifest in the wider use of sensors and and outside of an office building. voice recognition. The adoption of touchless technologies can not only prevent potential Digital collaboration platforms have created disease transmission but can also be coupled In this section we an opportunity to explore a virtual, augmented with technologies that can support space usage have seen how and mixed reality, along with new platforms tracking, optimization, and maintenance.
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