The pandemic has shifted the work culture to partial remote work, vacating office spaces, and making companies like in London, get rid of the excess unused property.
There has been a lot of shift after the pandemic hit globally. It has altered not only our brain chemistry but also the paradigm of lifestyle. Similarly, there is an evident change in the work culture environment which shifted from work-from-office to partial if not complete work from home.
Employees are now being observed preferring a work-from-home set-up rendering various offices in and around London vacant. Keeping that in mind, certain companies are deciding on selling off the owned properties since they’re not in use now as they once were in the pre-pandemic era.
In a survey conducted on almost 500 workers in London, it was highlighted that office space is not mandatory anymore for employees. There now exists a gap between the property in use and availability.
The shrinking need has made the companies sell their owned offices and properties with more of the work being shifted to remote from on-site locations. These post-pandemic times have changes not only our point of view but also our way of working and view of employment.
The alteration has made the companies of London sell-off and focuses on remote working, making it easier in terms of productivity and employer-employee facilitation.
Due to this change, 25% of companies in London are looking to get rid of their real estate in the city. Companies prominent in the white collar jobs were seen selling off their properties which now are mostly vacant.
These locations are prime to the city and hence their being vacant has created a vacuum of new requirements and old tenants. The whole change in dynamic and this new preference for remote work over the traditional work-from-office approach has rendered office staffless.
There is no denying that there has been a significant increase in the employees’ footprints in the office spaces, but they’re not enough to retain the location.
With rent increases in real estate and workers’ preference for remote work, companies are now oscillating between keeping or selling off their owned spaces. There is not enough capital for them to retain their lands and would be better if invested in making remote work easier.
The real estate market has always been competitive and expensive to retain hence this will make it less difficult for companies with more workforce to occupy them.
More than 70% of companies that were taken under study have clarified their stand on being pro-flexible towards employees’ working hours, making it comfortable for both the company as well as a worker.
The share of office rent with the cost of salary compensated to employees has gone down significantly in comparison to the year 2000. In a little over two decades, the cost of salary has been as much as rent paid by the companies for occupying the office spaces.
The success of remote work has led many businesses to re-evaluate their need for physical office spaces, which can be expensive to maintain.
The decision to sell off real estate by the companies in London has been driven by a desire to cut costs and increase flexibility for employees.
However, the shift towards remote work is not without its challenges. Some companies have struggled to maintain the same level of productivity and collaboration among remote teams, which has led to concerns about the long-term sustainability of remote work.
Despite these challenges, many businesses are continuing to embrace remote work as a viable option for their employees. As the economy continues to evolve, it is likely that we will see more companies shifting away from traditional office spaces and towards more flexible work arrangements.
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