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Why the hybrid model of working-from-home and office is making office space more affordable?

At a glance:

  • Get to know the benefits of a hybrid working space
  • Real estate leaders have an opportunity to attract new tenants by investing in new ways of work.
  • Read on to understand how the hybrid working model has reduced operating costs.

 

Hybrid working allows employers and employees to combine onsite and offsite work based on their needs. As a result of the lifting of COVID lockdowns worldwide, a wide range of hybrid arrangements have emerged, giving employees the flexibility they had never experienced before.

As a hybrid workplace, you get all the benefits of remote working (better work/life balance, reduced commute times, less environmental impact) and the benefits of traditional office-based work (face-to-face collaboration, elevated company culture, clear separation of home life from work life, emphasis on teamwork).

You may gain some financial benefits and reduce unused space in the office with fewer people. You could do this by renting portions of your office to other companies or by moving to a smaller building altogether. It is also possible that you might rather choose to hire a coworking space for your needs instead.

Although hybrid working model plans involve shrinking real estate footprints, the dawn of the hybrid work era does not necessarily equate to bad news for businesses and the commercial real estate industry. Investing in new ways of working will enable real estate leaders to attract new tenants as companies test the viability of this model.

The new working model has allowed workspace service providers to develop concepts such as shared office spaces, which offer a cost-effective way to reach otherwise inaccessible prime locations with less capital and operating expenditure. Businesses can gain maximum financial benefits from this method of reducing unused space. The overall property maintenance costs could be reduced by decreasing energy and media usage, moving to a smaller area, etc.

Although a dedicated place to work is essential for on-site employees, hybrid work eliminates the need for individual desks for each employee. The result is a lot of extra space, allowing commercial property sellers to increase sales with low margins and a high customer volume, resulting in affordable spaces for buyers.

As a response, many companies have started adopting open-plan offices, in which employees can choose where to work instead of being assigned a desk. Furthermore, open offices can also help boost Return on Investment (ROI) since they are less expensive to set up than traditional offices with individual desks.

Managing corporate real estate during a pandemic has been challenging, but the digitisation of work has provided an opportunity to bridge the gap between in-person and remote workers. The modern workplace is being transformed by technology, and tools such as employee apps are revolutionising the workplace. By changing the office environment to suit the hybrid work model, businesses can increase employee productivity and ROI.

While hybrid working is a benefit that takes a little time to process, some businesses are already taking advantage of it. If your employees aren’t always at the office, you won’t have to pay for electricity, hot drinks, heating, etc. When renting an office space, you might even consider downgrading in size, which could save you money.

In addition to the latest technology that makes buying, selling, leasing, and managing commercial properties simple, Axis Property has the common sense to know that sometimes you need to speak with a real person to solve a problem.

While we’re big enough to handle all the needs of our property owners and tenants, we’re still small enough to do it with a smile. Feel free to contact us and get your commercial property problem solved.