Prepare For Office Clearouts As Demand Falls

Businesses should begin to look for office waste removal companies to get rid of some of their desks, chairs and equipment as more employees working from home has meant firms do not need as much office space as before.

The majority of companies have had to adopt a working-from-home policy over the last 18 months as a result of the coronavirus pandemic. This has proved how successful flexible working regimes can be and that businesses can cope with more members of staff doing their jobs remotely.

Therefore, there is less demand for office space, according to First Sentier Investors’ Stephen Hayes.

Writing in Investment Week, he stated Covid-19 has “changed the game” when it comes to real estate investments.

“Global lockdowns have proven the viability of remote working and, even as the world normalises, many companies are adopting a hybrid working model going forward,” Mr Hayes wrote.

Subsequently, companies do not require as much office space, as employees can ‘hot desk’ when they have to come into the building and do not need a dedicated place to themselves.

This will lead to a fall in tenant demand, lowering rents, and higher vacancy levels. As a result, the value of office real estate is set to decline as companies rely on it less and less.

Tom Jansons, writing for Work Place Insight, also noted that many businesses are looking relocate, now they realise they do not have to be in the capital thanks to remote working.

“The suburbs are becoming cool again – boasting better air quality, more space and less commuting,” he wrote, adding there is also the advantage of significantly lower prices outside of major cities.