NEAR-TERM: BUSINESS CONTINUITY FOR OCCUPIERS
The risk of exposure to COVID-19 exists across all workplace environments. Unless a flexible workspace operator has implemented heightened health and safety protocols, the exposure risk in a flexible workspace is just as high, if not higher, than a traditional office.
However, many flexible workspaces are taking drastic measures to maintain strong hygiene and social distancing (more on this below), and so there may be specific ways to leverage the sector as part of their business continuity efforts. Depending on the business one may need to utilize a selection of these, rather than just one:
Whole Office Contingency: in the event that office is closed, or taking-up of new space is not possible due to construction delays, taking up space in less impacted locations through a flexible workspace operator could be considered. Several operators are proactively marketing this solution and some are exploring ways to unlock large blocks of inventory to accommodate major continuity demand.
Mission Critical Risk Mitigation: consider proactively leveraging the flexible workspace sector to disperse mission critical teams across two or more locations in order to mitigate risk.
Suburban Location Touch Downs: if the commute for some employees is particularly challenging or if working from home is not viable or productive, then using a flexible workspace operator with a network of residential/suburban locations could be another option.
Facilitating Meetings: occupiers could utilize meeting and advanced AV equipment at flexible workspace locations to facilitate necessary meetings, to disperse team numbers to aid distancing and risk mitigation. For example, large meetings could be broken up into smaller meetings and held at various locations with streaming/VC equipment readily available.
LONG-TERM IMPLICATIONS: WHAT WE’RE TRACKING IN A NEW OCCUPIER FUTURE
While it is too early to forecast the lasting effects of COVID-19 on flexible workspace, this pandemic is certain to impact both occupiers’ and operators’ future response plans and corporate real estate approach. Here are some of the key outcomes we will be tracking:
The massive work-from-home shift, mandated or encouraged by governments globally, presents the first real opportunity to measure productivity from remote working on a meaningful scale.
- How will this impact occupier’s willingness to implement remote working of staff connected by cloud technology in the future and what role will the flexible workspace sector play here, given not everyone has the ideal environment at home?
- Will a reduction in in-person building tours become persistent and drive adoption of new technologies to facilitate remote buildings tours?
- Is this a catalyst for the digitization in real estate, with a more widespread adoption of proptech and A.I. (e.g. robots cleaning, AR/VR touring)?
- Prolonged economic stagnation may present the first real financial stress test for many new operator entrants into the sector. How will this impact the dynamics of the sector six months from now?
- Will flexible workspace, split operations or city campus models emerge as key components of the corporate real estate strategies and business continuity plans for occupiers during disaster response scenarios?
- What types of new welfare, safety and security protocol will become commonplace for operators post-COVID-19?