The Office Sector’s Transformation: From Lockdown to Remote-First

Few could have predicted how disruptive the pandemic would be to the traditional office environment back in early 2020. Little did we know this would be the start of a seismic shift in behaviours and attitudes towards everyday life; at work, school and home.

Individuals, business owners, and many more were forced to pivot strategies overnight; in some instances accelerating 3-5 year plans in a matter of days and weeks.

This short content series shines a spotlight on some of the sectors we work with and the advances we’ve witnessed since the pandemic before we conclude with our predictions for the future of the sector.

Office

The office sector has undoubtedly seen major changes in working patterns accelerated by the pandemic. Today’s office space needs to encompass more than the basic needs of the employee, expectations have shifted and those working from the office now count on hotel standard amenities which surpass the home environment.

As a result, new trends have emerged, shaping the office landscape in exciting and unprecedented ways.

The widespread adoption of remote work

Prior to the pandemic, remote work was still relatively niche, with very few companies embracing it fully. However, when offices were forced to close temporarily, remote work went from being a nice-to-have to the default overnight. Business owners raced to setup secure remote access, video conferencing capabilities, and policies to support remote working.

And the impact was significant; office occupancy rates plummeted as much of the workforce began working from home full-time. At the peak of the lockdowns in 2020, occupancy levels dropped by over 70% according to Savills UK Regional Office Market Report. This was a turning point for many organisations as they re-evaluated office strategies with many leaning towards a hybrid approach moving forward allowing employees to split their time between office and remote settings.

This was also pivotal in adapting the workplace to suit new ways of working; having a space which fosters collaboration and creativity became paramount, as well as the emphasis placed on facilities and IT departments to ensure a safe and well-connected place to work.

MRI Software’s UK Consumer Pulse report identified that, since February 2023, an average of 60% of consumers have worked at home for at least part of the week. This hit a peak of 65% back in August 2023 and fell down to 61% in the most recent survey in October 2023.

For employees working from the office, the start of the week has risen in popularity, with Monday seeing a significant rise from 44% in August 2023 to 60% of consumers stating they travel to the office on Monday when surveyed in October 2023. This was closely followed by Tuesday (53%) and Wednesday (56%), with Friday being the least popular day to travel into the office however 47% of those surveyed do choose to travel in at the end of the week.

There are many reasons why hybrid working has risen in popularity, with 33% of consumers stating they are equally efficient at home which, has risen by 15% from 19% in February 2023. This is closely followed by the fact that employers are happy for their employees to work from home, rising by 10% from February 2023, alongside the cost and length of travel into the office affecting the decision to work from home for part of the week. In a time where rising prices are adversely impacting consumer spend, this has risen by 9% since February 2023, indicating that consumers are feeling financial pressures across the board.

The acceleration of digital transformation

Occupancy levels did rebound as the pandemic eased but still lag pre-pandemic levels especially as workforces remained distributed. To support shifting working habits, a seamless collaboration between in-office and remote workers is critical. Various cloud-based technologies rose in prominence including Zoom, Microsoft Teams and Google Meet enabling workforces spread out across the world to communicate and maintain productivity effortlessly. The pandemic acted as a catalyst for the implementation of robust digital infrastructures aimed at ensuring business continuity and operational efficiency in an evolving workplace environment.

Focusing on the employee

A notable trend throughout the pandemic and beyond has been employee wellbeing. Organisations now have increased efforts on supporting their employee’s mental health and work-life balance as remote work blurs the boundaries between professional and personal life. The introduction of flexible working hours and wellness initiatives have become common strategies to foster a positive and sustainable work environment.

A greener, sustainable workplace

Many organisations are actively adopting green building practices and incorporating energy efficient technologies. For example, by combining footfall analytics technology with energy management software, facilities teams have the opportunity to create a more efficient and flexible workplace ultimately driving significant cost savings as demonstrated at MRI Software’s head office, whilst minimising the impact on the environment.

This shift towards sustainable office buildings reflects a growing awareness and commitment within the industry to creating healthier workspaces for employees.

A new era, a new purpose for the office

As companies re-evaluate office space needs, with remote working front of mind, many will consider or have already downsized their office footprint, redesigned office layouts to accommodate fewer employers on any given day and this is likely to have implications for commercial real estate markets and property management but could also act as a lever to open doors for growth in mixed-use developments encapsulating retail, residential, office and healthcare.

Looking Ahead

As we look to the future, it is evident that the office is far from obsolete and will continue to evolve in response to the changing dynamics of the workforce and technological advancements. The lessons learned over the last few years have paved the way for a more flexible, inclusive and digitally-driven workplace. Remote work should be viewed as a strategic advantage enabling organisations to position themselves for long-term success in a world that is becoming increasingly interconnected.

In partnership with WorkTech Academy, we have published our latest report which takes a closer look at 20 different ways in which companies are already changing their approach to the workplace and realigning spaces and buildings for a new era. Download your copy here.

Learn more

Footfall Analytics

Boost performance with actionable insights based on AI-driven footfall analytics

Learn more