Will the Home Work Revolution Shrink Your Office?
It was a revelation to executive Sheldon Lewenfus that workers at his healthcare management company did their homework well after the pandemic forced them out of their Los Angeles offices the year. last.
“I’m kind of old school, but I was quite surprised that things got better,” he said. “The productivity was the same; no loss of customers. Everyone seemed quite happy.
The success prompted the company, MedPoint Management, to get rid of half of its office space on an upcoming move to new premises while keeping its staff of around 800 intact. Half of them will work mostly from home and the rest will work from home on some days and in the office on other days.
These hybrid work schedules promise to become the norm for many companies. This is a revolutionary change for most businesses that is celebrated by a significant number of employees, according to Workforce Surveys.
Building owners nervously watch office tenants wonder if they should reduce the space they are renting. Restaurants and stores that depend on a daily flow of office workers to stay afloat are also at risk. These owners and businesses have their own workers who want to keep their jobs.
The pandemic-imposed disruption of the country’s vast office rental market is in its infancy, and coronavirus mutations such as the highly infectious delta variant are adding to the uncertainty.
Many companies are still unsure whether they will require their employees to return full-time once the pandemic is under control and what their offices should look like when they return. Some managers may even want additional office space to give their employees more respite from each other.
Office developers are hoping the rental market has bottomed out, but many are waiting to see what types of offices future tenants will want before building new ones, according to Allen Matkins / UCLA Anderson’s summer forecast.
Aquent, which provides temporary workers for marketing and other creative ventures, is retiring almost entirely from offices and will allow almost anyone to work from home from now on.
The company has offices across the country, chief executive Erin Bloom said.
Aquent will grow from approximately 200,000 square feet of office space to 24,000 square feet, maintaining its IT equipment in a Seattle building for security and a small office in the suburbs of Boston where the company is based and records are kept. His remaining unwanted leases expire this year, Bloom said.
But many bosses like Netflix’s Reed Hastings are already ordering their employees to return to the office en masse.
There are many reasons why white collar businesses like having their employees together, including the belief that people working in isolation can lose their personal connection to their business.
“Having an office space strengthens the corporate culture, so you don’t have people constantly leaving if they think they are free agents working from home,” said Michael Soto, director of the looking for Savills real estate brokerage.
– Tribune press service