City View

Commercial Property

The pandemic continues to change our needs and our priorities. On an individual level, many of us have switched from dining out to baking our own bread. We’ve swapped pints in the pub to spritzers in the back garden. The way we work has also changed significantly. With spare rooms becoming offices and kitchen tables desks, while our real offices and desks have gathered dust.

 

With many businesses starting to consider the re-opening of their offices many may not need as much space as they had previously occupied. This is partly because they want to operate a hybrid model, where some staff work remotely and some in the office, and partly because many companies have made (or are likely to make) swathes of their workforce redundant due to the economic impact created by the pandemic.

Offices

Many occupiers are seeking to better utilise their commercial office estate with many employers grappling with the employees demands as well as their well being. Productivity and employees mental health being the two priorities. Landlords are seeking to evolve their offering by providing more flexible modern accommodation in well-connected and sustainable locations. Many employers are seeking to adopt the Hybrid Model allowing staff to flex their time in the office and working from home or an alternative office location, as seen below in the results of a recent carried out by

Eden McCullum (April 2021)

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Manufacturing

Retailers

Hotels & Hospitality

This is one of the most significant casualties in the Covid-19 pandemic. Many remain closed and are re-assessing their need for accommodation, the mix and style as well as locations. How this sector will be ‘re-started’ is yet to be determined, but rest assured, it will not be an easy one to resolve.  

Commercial Property

The pandemic continues to change our needs and our priorities. On an individual level, many of us have switched from dining out to baking our own bread. We’ve swapped pints in the pub to spritzers in the back garden. The way we work has also changed significantly. With spare rooms becoming offices and kitchen tables desks, while our real offices and desks have gathered dust.

 

With many businesses starting to consider the re-opening of their offices many may not need as much space as they had previously occupied. This is partly because they want to operate a hybrid model, where some staff work remotely and some in the office, and partly because many companies have made (or are likely to make) swathes of their workforce redundant due to the economic impact created by the pandemic.

Offices

Many occupiers are seeking to better utilise their commercial office estate with many employers grappling with the employees demands as well as their well being. Productivity and employees mental health being the two priorities. Landlords are seeking to evolve their offering by providing more flexible modern accommodation in well-connected and sustainable locations. Many employers are seeking to adopt the Hybrid Model allowing staff to flex their time in the office and working from home or an alternative office location, as seen below in the results of a recent Survey carried out by Eden McCullum (April 2021)

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"The vast majority of businesses are planning for employees to be in the office part-time post Covid-19. A third say that their people will be onsite 2-4 days per week, with the flexibility to choose which days they are in; a fifth (19%) say that their people will be onsite for certain specific tasks, with flexibility for other matters and a further fifth (18%) say that staff will be onsite on specified days, with flexibility at other times.  Very few businesses are offering full flexibility (5%) or mandating full-time in the office (3%)."

 

 

Source: Managing the Covid-19 Crisis: Returning to the office - 

Survey conducted by Eden McCullum -14 April 2021

Source: Managing the Covid-19 Crisis: Returning to the office Survey conducted by Eden McCullum -14 April 2021

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"In the short term, city centres are expected to remain lightly occupied: around 75% of businesses expect less than half their employees will be onsite in the near future. Once the Covid-19 crisis is truly over around 60% expect more than half will be back onsite at any one time.

Of course, the question of where to work confronts business leaders as well. Two–thirds of business leaders expect to spend 2-3 days per week in the office once business returns to “normal”. Less than a quarter (23%) say they will be in 4 days per week or more."

Source: Managing the Covid-19 Crisis: Returning to the office - 

Survey conducted by Eden McCullum -14 April 2021

Source: Managing the Covid-19 Crisis: Returning to the office Survey conducted by Eden McCullum -14 April 2021

Manufacturing

Whilst they have suffered during the downturn, many have either been able to manage with skeleton staff working a wider shift pattern to keep production going and socially distancing. Others have re-purposed to meet the needs of the nation for PPE and other support activities during the Covid-19 pandemic.

Demand for commercial industrial accommodation continues to outstrip supply and this in turn continues to see rents rising.

Retailers

Retailers require good quality and well located distribution hubs that are capable of supplying the needs of the population in a timely and efficient manner.

The retail high street has been the greatest looser in the commercial property market. With an abundance of large retail units and smaller retailer casualties the High Street is having to re-purpose itself to meet modern day demand. 

New Permitted development rules will allow some re-purposing into alternative uses and this is already happening with some of the larger department stores and failing shopping centres. 

Hotels & Hospitality

This is one of the most significant casualties in the Covid-19 pandemic. Many remain closed and are re-assessing their need for accommodation, the mix and style as well as locations. How this sector will be ‘re-started’ is yet to be determined, but rest assured, it will not be an easy one to resolve.