| Flex appeal: Will coronavirus prompt shift to short-term, flexible office deals?
The future of the office – post-pandemic – is very much the theme this week with several stories providing different takes on the outlook for the workspace sector.
According to Nuveen Real Estate, widespread media speculation that the coronavirus crisis will prompt occupiers to rid themselves of 'redundant prime real estate' in favour of new work from home (WFH) arrangements, is premature.
"We’ve been here before," says says Nick Deacon, Head of European Offices at Nuveen Real Estate. "The advent of the internet had people pondering if the traditional office was extinct - and yet, here we still are.”
Nuveen is, however, predicting an increase in the adoption of 'core-and-flex' office models with companies continuing to hold up to 70 per cent of their strategic real estate on long leases with the remainder on flexible, short-term deals.
An announcement by LABS this week seems to suggest that there is plenty of appetite for flexible workspace in the capital with the company having signed deals with four new occupiers at its premises in Holborn and Camden totalling 45,000 sq ft.
etc.ventures meanwhile, is another flexible workspace provider that could benefit hugely from any shift away from long-term leases. The company, which provides meeting rooms in London, Manchester, Birmingham and New York, says it has seen 'strong evidence' that many businesses are planning to give up on permanent offices completely.
“We appear to be seeing the start of an office culture paradigm shift," says COO Nick Hoare. "Many businesses are now looking to give up their current offices and the rigid leasing costs involved."
WFH will become the norm for many workers predicts etc.ventures with companies using flexible office spaces for internal and client meetings, perhaps two days a week.
In other news this week, we report on a move by the International Property Securities Exchange (IPSX Group) to make its market data available to the 12,000 institutional, retail and online traders who use Iress software and data feeds. And we also have news of AXA IM - Real Assets' second comingled European infrastructure debt fund, which has raised over EUR1 billion.
Property Funds World
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