The remote work experiment mandated by the COVID-19 pandemic is going to remain a permanent trend, and at a period, workers will go back to the office in numbers like they were before. When? It’ll likely take 5 years, according to a prediction from Cushman and Wakefield.
Worldwide office vacancies won’t go back to their pre-coronavirus max levels till 2025; we would have already lost and a total of 25,000,000 square ft of office vacancy because of the COVID-19. This report is based on the outlook from top real estate services firms worldwide. Between the second quarter of 2020 and the third quarter of 2021, the total negative office square ft damage will be as high as 95,000,000 square ft, which is about 10,000,000 square ft over the financial crisis.
In the West, this situation is going to be worse. While the financial crisis was one the U.S., Europe, and Canada recorded a tubal loss of 120,500,000 of square ft occupancy from peak-to-through. Also, the second quarter of 2020 that’ll get to more than 200,000,000 square ft of “negative absorption” peak-to-trough in this coronavirus recession, based on the analysis of Cushman and Wakefield.
It’s “very real” to work from home
Recently, the chief economist of the firm, Kevin Thorpe, told CNBC that we are aware that this work from home trend is true. In general, there’s an estimate from the real estate firm that 82 percent of all damages will have to do with cyclic factors: the risk of coworking and loss of permanent offices hovering, while 18 percent has to do with structural factors: basically, assumptions with regards to hybrid workers (the ones who work remotely sometimes) and permanent remote workers.
Working from home will increase by 100 percent, and there’ll be an increase in hybrid workers. According to the study, there’s an estimate that the number of individuals who work permanently from their houses in Europe and the United States will increase from about 5 to 6 percent before COVID-19 to around 10 and 11 percent after COVID-19. While that of hybrid or agile workers will increase from around 32 to 36 percent to just below half of the whole workers.
According to an announcement recently made By Google, it’ll attempt the hybrid work model because almost all its employees don’t want to be in the office daily. Several young employees are traveling to places because of this remote working shift due to covid, living as a digital nomad, and this shift will likely be permanent for a new labor generation.
As time goes on, as the economy moves to a knowledge-based expert services economy, it’ll offset the trend of a flexible workforce, according to the study of Cushman and Wakefield. Several employees still don’t feel as safe to go back to the office. According to a study, just 14 percent of employees said that they believe their senior managers and CEOs will securely lead them back to their offices.
There’ll be a rise in worldwide office vacancy from 10.9 percent before COVID-19 to 15.6 percent by the second quarter of 2022, the study predicts. During this crisis, a couple of the top companies worldwide have been increasing office spaces in major cities like New York.