Member Article

Let’s halt the obituary for office space. The workspace didn’t die - it was just reinvented

By Alexander Passler, Co-Founder and CEO of VALLIST

There was, once upon a time, a narrative that WFH was the slayer of office space. The comfort and convenience of working from home, and not needing to commute into an office space that wasn’t your own space, was the norm. However, this oversimplifies what is now a very complex reality. Hybrid work is the most dominant setup amongst professionals. In fact, in the UK at least, just 14% of the workforce is now fully remote, compared to the 38% peak in June 2020 when lockdown first lifted. The office isn’t dead, it just looks very different now.

According to Knight Frank, occupier demand for London offices has hit its highest level in a decade, with almost 12 million square feet of office space being sought. While tech companies like Meta have reduced their office footprint, other sectors, such as financial institutions, are taking a different approach. You only need to look at the words of JPMorgan Chase CEO Jamie Dimon, who has been a vocal advocate for in-office work, citing its importance for training, creativity, and maintaining company culture.

What employees really want

Yes, remote work offers flexibility, but it can't fully replicate the social and psychological benefits of in-person work environments. Face-to-face interactions are integral to stronger relationships, enhancing team cohesion, and providing opportunities for spontaneous collaboration that virtual meetings via a webcam can't match.

Remote work has also shown limitations in areas crucial for long-term career development. Mentorship, networking, and absorbing company culture are all significantly more challenging in a virtual setting. Many employees, particularly younger ones, are finding that career progression can be hindered without regular in-person interactions with colleagues and superiors.

The office of the future is about adaptation

The key to bringing employees back isn't just about mandating return-to-office policies – it's about reimagining what the office can offer. Companies successfully attracting workers back are those that have adapted their spaces to meet new expectations.

HSBC learned this firsthand. Bosses struggled to get their workforce to return after a multi-billion dollar refurbishment of HQ, and it wasn't because employees preferred working from home. Rather, they had grown accustomed to the amenities offered at their temporary WeWork offices and found the new HSBC offices lacking in comparison. It seems that big shiny corporate buildings no longer cut it. 

Flexibility, collaboration, and employee well-being are the new priorities in the modern workspace. Open floor plans are being balanced with quiet spaces for focused work. Cutting-edge technology is being integrated to support hybrid meetings and seamless collaboration between in-office and remote workers. One of my own favourite tech features is being able to remotely see who is in the office at any given time. It’s the small details that matter. 

What the office in 2024 should look like

Some of the most critical elements in a shared workspace are often overlooked in traditional office designs. High-quality audio-visual equipment and sound insulation have become necessities rather than nice-to-haves. In our own experience at Vallist, sound insulation is a common complaint in office spaces we've taken over and improved. These elements are crucial not just for employee comfort, but for productivity and job performance, meaning employers directly benefit too. 

Wellbeing has become a crucial factor in office design, driven by evolving work patterns and economic pressures. In 2020, the "Tuesday, Wednesday, Thursday" office worker could save significantly on commuting costs by working from home two days a week. Fast forward to 2024, and many employees find themselves unfairly pinched by increased commute costs and the expectation to be in the office Monday through Friday.

To offset these new financial pressures and attract employees back to the office, companies are investing in added value within the workplace. Free gym memberships, comprehensive health and wellness programs, and enhanced food and beverage options are just a few of the incentives being offered. These perks serve a dual purpose: they compensate for the increased costs of full-time office work and create a more appealing work environment that promotes overall employee wellbeing.

This focus on employee wellbeing and satisfaction has led to a fundamental shift in how we view the office space market. At Vallist, this realisation has prompted us to reconsider who our true customer is. While employers are the ones renting the space, it's becoming increasingly clear that employees are the ultimate arbiters of demand. Their preferences, needs, and overall satisfaction are what drive the success of any office space.

The office of the future, therefore, needs to cater not just to the companies leasing the space, but to the individual employees who will occupy it day in and day out. 

Yes, your chair and desk in that 200-person open plan office space is dead. We can celebrate that. However, the conversation around the future of work needs to be reframed. It's not about the death of the office, but its evolution. The office of the future will be a destination – a place that offers experiences and opportunities that can't be replicated at home. Companies that succeed in the future - balance sheets aside - will be those that embrace these new demands. They'll create office spaces that complement remote work rather than compete with it, offering the best of both worlds to their employees. The office isn't dead – it's being reinvented, and its best days may still be ahead.

This was posted in Bdaily's Members' News section by Vallist .