11.05.2021 Views

Office Recovery: The Great Experiment

Key takeaways: • The great hybrid work experiment is beginning, with most companies (58%) saying they will implement a hybrid model of work. • In this experiment, flexible office spaces are expected to make up about 6% of future total office space in the market. • Office vacancy is predicted to increase by another 5.7% over the next few years, a forecast that is holding steady from our June 2020 report. • When making decisions on office space, employers rank employee productivity, culture, and collaboration as more important than operational savings.

Key takeaways:
• The great hybrid work experiment is beginning, with most companies (58%) saying they will implement a hybrid model of work.
• In this experiment, flexible office spaces are expected to make up about 6% of future total office space in the market.
• Office vacancy is predicted to increase by another 5.7% over the next few years, a forecast that is holding steady from our June 2020 report.
• When making decisions on office space, employers rank employee productivity, culture, and collaboration as more important than operational savings.

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8. Higher quality office buildings are in demand

for all tenants, yet additional priorities differ

depending on whether they are returning to the

office full-time or operating on a hybrid model.

Regardless of whether tenants are choosing to

return to the office full-time or operating a hybrid

model, the desire for higher quality office buildings

increased by 6% and 3% respectfully. That said, the

choice of operating model shaped other priorities.

For those returning to the office full-time, walking

access to amenities and access to a dedicated

parking lot were deemed more important than

before the pandemic and less important to those

operating a hybrid model. Access to public transit

remained unchanged for those returning full-time,

while decreasing 9% for those planning for a

hybrid model.

“For employers

anticipating a hybrid

model of work, the

importance of access

to public transit

decreased by 9%.”

One outcome of this could be that companies on

a hybrid model start relocating to the suburbs

as their employees do not need to rely on public

transit every day. In contrast, companies who plan

to return to the office full-time will continue to see

public transit as an essential criterion in the office

they choose.

Figure 9: How the pandemic has shifted priorities for office

space

10%

5%

5% 5%

6%

3%

0%

0%

1% 1%

-1%

-2%

-5%

-10%

-9%

Access to

public transit

(rail/bus/

subway)

Access to

highways/

drivable

commutes

Walking

access to

amenities for

your staff

Access to a

dedicated

parking lot

Higher

quality office

buildings

Companies returning to office full-time

Companies returning to a hybrid model

Colliers Real Estate Management Services | Office Recovery: The Great Experiment Spring 2021 10

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