Reports of office’s death are ‘greatly exaggerated’
REPORTS of the office’s death have been ‘greatly exaggerated’, according to new research by Channel Islands commercial property experts D2 Real Estate.
That showed that the average rating of the importance of the office by 145 of the Channel Islands’ leading companies had actually gone up since its previous survey on the future of the office a year ago.
Asked to score the role of the office from one being ‘not at all important’ to five being ‘essential’, the average score in the firm’s latest survey had gone from 4.31 to 4.63. Not one response gave a score of either one of two.
‘Reports of the office’s death have been greatly exaggerated. The office remains highly relevant to occupiers,’ said the D2 Real Estate report. ‘This suggests overwhelmingly that the power of in-person collaboration in the office is central to the fortunes of the islands’ economies.’
On the issue of floor space requirements within the next five years, the latest findings from surveyed firms were broadly in line with the previous year.
The most popular response in the new survey was that it was likely remain unchanged at a little over 45%.
But one in five expected their floor space requirement to rise by more than 10%. Just under 15% said it would rise by up to 10%, while 15% said it would fall by more than 10%. A handful said it would fall by up to 10% over five years.
The report also noted that other shifts had been seen, especially around the importance of staff wellbeing, with occupiers investing in premises or relocating to better quality workplaces.
‘As our survey reveals, many key functions are considered better suited to the office but to attract and retain talent, which is critical due to the Channel Islands’ limited labour pool, businesses are keen to make the workplace attractive and welcoming,’ said D2 Real Estate.
This in turn had filtered through into the occupational market, with a flurry of new enquiries in late 2021. Occupiers were still entering into long-term lease commitments and rents were stable.
‘Long-term lease commitments and strong covenants are attracting a variety of investors, particularly from overseas, with the first US REIT [Real Estate Investment Trust] entering the market. Liquidity is improving as new funds are being created and the local HNWs [high net worths] are making investments up to £50m. with no debt.’
Environmental, social and governance concerns were also gaining momentum – with 25% of respondents naming it as their second priority in taking/retaining office accommodation behind staff wellbeing at just over 50%.
