According to government data, England’s office space fell by 18million sq. feet in the aftermath of the pandemic. Expectations are that this trend will persist.
This was an equivalent of 35x the amount of floor space in Gherkin’s building in City of London, which saw a 2 percent decrease in 12 months to March 2021.
According to commercial property experts, the fall is a trend going forward. People continue working from home and only need to go to the office for a couple of days per week. In five years, one out of ten offices will no longer be needed.
Boodle Hatfield also analysed data from the Valuation Office Agency, and discovered that falls were larger in smaller cities than they are in central business districts.
Derby, the most affected city was hit the hardest. Experts added that many of the UK’s abandoned office space will likely be converted into homes.
The average occupancy level in offices in England has fallen to 10 percent in the week preceding Christmas, after it was higher than 20 percent.
Pictured today in Central London, a station for hand washing is next to empty chairs
Today’s bank holiday Monday saw rows of empty seats in a Central London office.
According to the Financial Times, the data showed a dramatic drop in use of national offices in the first year after the country was placed under national lockdown.
It was partly because many construction projects were halted when the restrictions began in March 2020. The developers had’remained suspicious since’.
According to the analysis, office space in Greater London dropped by 3% during the time period. However, the drop was twice as high in outer London.
These areas had the greatest loss of office space: Brent, North London (19%), Brentwood in Essex (18%) and Brentwood in Southampton (18%). Ealing (14%) was in West London.
Analyses were conducted on office spaces that have been taken out of service permanently, as opposed to vacant space without tenants.
David Rawlence is an associate with Boodle Hatfield. He said that the Coronavirus had shaken up commercial property, leading to substantial amounts of vacant office space. This is especially evident in small cities and the outer London suburbs.
He stated that businesses are seeking high-spec offices with the latest technology to lure workers into their office.
Spaces which facilitate co-operation between colleagues and have amenities to promote mental well-being such as gyms or relaxation rooms. These spaces are most appealing to potential commercial tenants.
According to the firm, offices located in prime areas with easy access to local amenities and public transportation links will still be attractive to companies.
Commuters riding on a Bakerloo line Underground train carriage during the night rush hour, December 13, 2013. This was the date that the new work from home guidelines came into effect.
London’s Canary Wharf was bustling with office workers last October during morning rush hour.
The experts stated that commercial landlords should be ready to negotiate more flexible terms for office space, higher quality offices, and other amenities.
Analysts believe that the lack of office space is likely to fall further in March 2021 as a result of shifting towards working remotely for longer periods of time.
Mat Oakley is a commercial property expert who told The FT, “Our view is that we don’t need as many offices in the UK or elsewhere if there are high levels of agility working.”
Savills European Commercial Property Research Head said that the falling in space was “a trend going forward” and “a trend that has to happen”.
Boris Johnson, the Prime Minister of Britain, reiterated today that Government advice from last month that individuals should work remotely whenever possible.
Similar advice is a regular feature in lockdowns. It was recently introduced as part of Plan B to fight the Omicron variant.
He spoke to journalists during a visit at Stoke Mandeville Stadium, Aylesbury in Buckinghamshire. Everything will be reviewed.
“The mix of activities that we do at the moment is, in my opinion, the right one.”
“So, Number One, keep with Plan B. Make sure people are taking it seriously. Use the Plan B measures. Work from home when possible. Take a test before you go out and meet people that you might not normally get to know. Think about Plan B requirements, but also receive a boost.