A lot has been written about how the COVID-19 pandemic will affect the way we live and work. Opinions vary widely and, in some cases, wildly about the long-term effects of a crisis which is ongoing. There is still much we do not know about the virus, so making bold predictions is unwise. Instead, perhaps we should consider both sides of the argument. Do fears of contamination and social distancing mean the office is dead?

Yes, technology and workplace culture have moved on.

The nineteenth century transport revolution which brought us railways, motor vehicles and better roads was followed by urbanization, which brought white collar workers together in office employment and eventually gave birth to the commuter. Today however, several factors are conspiring to weaken the forces which compel us to travel to and from the office every day.

Transport infrastructure has become the bane of many governments and travellers globally. Commuter infrastructure is more often than not overcrowded, unhealthy, expensive, environmentally damaging and unreliable. Traditional models of urbanization meanwhile are being refashioned around a New Urbanism which focuses on communities which offer a rounded mix of work-live-play real estate uses, as an alternative to the tyranny of the daily commute between residential, work and leisure zones. Taking away the stress and expense of commuting, which for many people is the worst part of their working day, leads to a higher quality of life and more productivity. Resource-hungry suburbs, with their huge need for land and infrastructure, are no longer required and can be replaced by more densely populated, greener, walkable communities. Technology and the internet revolution mean we can now take our work anywhere. Inventions such as blockchain can ensure that documents are secure, and contracts can be exchanged in cyberspace. Tools which help us collaborate remotely are also multiplying and 5G networks give us the capacity to run them.

Office costs are typically around ten percent of total costs but can be much higher in core locations where land prices are highest. Savings could be significant if staff work remotely. For employees, the costs of commuting by public or private transport are also substantial. There will remain a need for collaborative space, but this doesn’t need to be an office in the conventional sense. A flexible workforce doesn’t need dedicated desks in huge CBD buildings, but rather adaptive space within walkable distance of home. With such flexibility hardwired into a business, it will not need to lease floors, but rather to provide employees with the tools and budget to choose when and where they work. Even before the pandemic highlighted the shortcomings of packing people into offices, the recent past was telling us the workplace status quo is changing. An office-free future offers employers and staff flexibility and choice.

No, the workplace is part of our lives.

Humans are social animals and thrive with contact. Businesses recognise this, and modern office design aims to foster teamwork and collaboration. Cutting edge offices provide a much greater level of amenity and more shared space, which is important to younger employees. Open plan offices with cubicles are giving way to multipurpose spaces which have room for more collaboration areas, coffee shops/staff canteens, quiet rooms etc. The company itself is also a community in its own right and provides diversity in social relationships; for many people colleagues are as important as friends or family. As many economies worldwide continue to evolve towards a more tech and services-based economic model demand, particularly for high quality offices, should increase, not decrease. Services businesses, particularly professional services and finance, require regular client contact, in a convenient location close to transport. These are all key attributes of established business districts.

Working from home has been tested on an unprecedented scale recently and the lessons being learnt are instructive. Many dislike the social isolation and monotony of remaining at home, remote from human contact. Juniors struggle to learn without access to mentors and senior colleagues. Sadly, some employees simply cannot be trusted to work from home and effective management is difficult. Many employees, especially in Asia, live in crowded multi-generational apartments and prefer the office environment where they can be more productive. Few people have the luxury of a ‘home office’ and in larger cities few will have access to outdoor space. Technology infrastructure is also a problem for many businesses, especially if they have to become more reliant on less advanced and less secure domestic networks. Employees will also soon start to notice that costs are being re-allocated from businesses onto staff.

What do you think?

Further reading:
Savills Asia Pacific Research