Over the past few years, hybrid working has become a prominent topic amongst businesses with many companies opting for remote and flexible options. However, more recently, there appears to be a shift in how businesses roll out their hybrid working policies.
How is the implementation of hybrid working evolving, why is this happening and what do we expect as we move into 2023?
COMPANIES THAT WILL SUCCEED WITH HYBRID WORKING IN 2023 MUST IMPLEMENT A ROBUST AND CLEAR POLICY AS A STARTING POINT
Identifying the frequency and specific days that people come into the office will determine how much workspace companies need going forward. Businesses experiencing success with hybrid are now mandating specific days per week rather than using an ad-hoc approach, whereas younger more risk-averse businesses are less likely to have a defined approach.
BEYOND A ROBUST POLICY, EXECUTION OF A SUCCESSFUL HYBRID WORKING STRATEGY WILL REQUIRE BUSINESSES TO INSPIRE A DESIRE TO RETURN TO THE OFFICE
Enhanced collaboration.
Creativity.
Wellbeing.
Accessible location.
Businesses are rethinking their office space to motivate and inspire their employees and, by applying the above qualities, are attracting people back to the office.
But how do you know what your employees want from their office space? Well, tools such as staff surveys are now being used to identify exactly that.
We’re also observing a move towards sharing office space with partners to utilise the space more effectively whilst creating a more animated atmosphere. An example of this would be Tailify, an Influencer Marketing company, whose hybrid policy aligns with a completely separate business, enabling them to share their new office space whilst providing a more cost-effective solution for both parties.
HOW HYBRID WORKING WILL SHAPE OFFICE SPACE IN 2023
With the demand for fitted and flexible space on the rise, competition has increased. Therefore, businesses may struggle to get great deals as landlords can leverage this increased interest.
An effective hybrid policy and better utilisation of space has allowed businesses to reduce their square footage. As a result, they can now find more impressive, but smaller spaces as they don’t need to account for a full headcount. In turn, we’ve seen a rise in more cost-effective deals in the lease-specific property market for non-adopters of hybrid working strategies as there’s less demand for these spaces.
HYBRID WORKING WILL CONTINUE TO SHAPE LEASE TERMS AND NEGOTIATION AND OFFICE SPACE INVESTMENT
We expect the increased demand in remainder leases (sub-leases assignments) to continue, as these have the benefits of a quick turnaround and much lower upfront and exit costs.
In addition, we’re seeing a greater emphasis on flexibility with a rise of serviced and managed offices for shorter 12 months contracts as the current economic climate means VCs are concerned about where the money is being spent. Forward Partners, a VC themselves, have relocated to a smaller premises from 40 to 20-person office, which has helped in halving their overheads.
Moving into 2023, we envisage these questions will become more pertinent due to economic uncertainty and instability. If you would like to discuss your hybrid working policy and overall office strategy, get in touch.
WHAT OUR TEAM THINKS…
Making Moves Associate Director, Grant Marcus, had this to say:
“Office space and occupier strategy has gone through many changes since the start of the pandemic. Fundamentally, the office now needs to cater for all needs from focus, culture, to collaboration. There are many solutions and routes a business can take, and we have seen such a diverse range of these decisions in 2022. Two words spring to mind for me; 1) data, and 2) structure.
- There is enough data after nearly three years (since the first lockdown) to allow businesses to make better informed decisions on their workspace.
- We like structure. Implementing fixed days in your hybrid policy provides this structure, whilst not losing out on a positive balance of hybrid working. This also allows for an easier process on budgeting and selecting a suitable solution for your team.
I’m encouraged by the positive direction office space has taken this year and am excited to support many more of our fantastic clients in 2023.”
If you’re considering your next office move, rethinking your office design, or wanting to exit the space before your lease is up? Get a bespoke solution tailored to your needs by getting in touch.
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