Companies seem to be preparing for a return to physical workplaces, with a strong interest in offices.
Global workplace broker First Office Hub, says the London office world is extremely active with companies of all sizes and industries researching offers and looking for the right deals for 2021.
Clive Buckley Founding Partner of First Office Hub said: “The pandemic has created uncertainty in most industries, transparent contracts and turnkey solutions are the best office formula for 2021.
“The big changeover in recent weeks has been that larger companies can no longer commit to the traditional five-year lease with a three-year break – they need more flexibility than ever before.”
After completing transactions for several large established companies in London ranging from 40-425 office requirements, First Office Hub said the motivation is to cut office costs and manage cash flow while providing a better and more flexible work environment for their employees.
“We believe that from now through 2021, we will see businesses reassess their office needs and headquarters spaces by incorporating employee feedback and preparing for economies of scale by recalibrating office requirements.”
The global workplace broker says all areas of London are seeing interest as client demands revolve around great deals in a particular location. “In commercial office space, it’s less location, location, location, more flexibility, flexibility, flexibility right now,” though Buckley agrees that some companies still have a penchant for certain parts of the capital because of niche industry clusters.
Both serviced offices and managed offices currently offer more flexible, cost-effective solutions that provide businesses with everything from A to Z. “The managed office route is certainly popular with companies that don’t want to encounter others in shared spaces and Kitchens; sometimes this is for privacy reasons, although at this point people are clearly reporting health protections and concerns about social aloofness, ”Buckley explains. “Aside from the big deals, there is another growth area in the 20 to 30 person space where our customers were keen to keep their own identity and corporate culture, but recognize that they no longer need space for all 60 people at once. . ”
On the small end of the market, First Office Hub confirms that there are a lot of companies looking too. “It’s the same for them as it is for big companies: they look at deals and think they don’t necessarily need all the staff at once, so smaller offices and more service office company ‘membership passes’ are key to their survival.” Buckley confirms that there are at the moment there are some “incredibly good deals”.