_Post-Pandemic Office Insights: What Every Business Should Know

The COVID-19 pandemic triggered a massive remote work experiment, altering the traditional office dynamic and accelerating trends already emerging in the industry. Now, as businesses transition back to physical spaces, developers, landlords, and tenants are rethinking their priorities and reimagining office environments to meet evolving needs.

From a real estate perspective, the return to the office is characterized by several key considerations. Knight Frank’s (Y)OUR SPACE, a global survey encompassing 640 commercial real estate leaders, including 46 from the UAE and Saudi Arabia, provides insights into their attitudes toward workplace strategies, the future of work, the workplace, and corporate real estate.

One of the foremost trends is the surge in demand for flexibility and adaptable spaces. Tenants are increasingly seeking layouts that support hybrid work models, balancing remote and in-person collaboration. This shift is reshaping leasing strategies, with a growing preference for shorter lease terms and spaces that can be easily reconfigured.

Prioritising Health, Safety, and Location

Health and safety have taken centre stage. Tenants are prioritising buildings with robust ventilation systems and touchless technologies. Landlords are responding by integrating these features into existing buildings or designing new buildings with health-conscious amenities.

Another crucial aspect is the re-evaluation of location preferences. As remote work blurs the boundaries between home and office, employees are seeking workplaces that offer more than just a desk. Proximity to amenities like parks, restaurants, and cultural attractions is increasingly valued, as the office transforms into a destination rather than just a workplace. Many occupiers are evaluating completely new approaches to their portfolios, including the adoption of “hub and spoke models” where there are several satellite offices and one main office in any city.

Human-Centric Design: What Do Employees Need?

From a human-centric perspective, returning to the office means understanding and meeting employee needs and expectations. The office must offer something beyond what employees can get at home. Many workers miss the social interaction and sense of community that the office provides, especially in regions like the Middle East, where social lives often revolve around work colleagues. Real estate professionals are creating inviting, purpose-driven spaces that foster collaboration and well-being.

Design trends such as open floor plans, comfortable breakout areas, and biophilic design principles are gaining traction. Wellness features like onsite gyms, meditation and yoga rooms, and healthy food options are becoming standard, reflecting the growing emphasis on work-life balance. Sustainability is also a cornerstone of modern office design. Green buildings not only reduce environmental impact but also enhance tenant health and productivity. Features like energy-efficient systems, green roofs, and recycled materials resonate with tenants who prioritise corporate social responsibility.

Community Impact on Workplaces

The return to office highlights the significance of community engagement and inclusivity in real estate development, with developers partnering with local organisations to drive neighbourhood revitalisation and diversity promotion in commercial spaces. Particularly in the Middle East and Africa, efforts include repurposing retail spaces and enhancing tenant experiences.

Navigating this transition requires a holistic approach, balancing economic viability with human-centric design, envisioning future offices as inclusive environments fostering innovation and well-being. This paradigm shift towards flexible, sustainable, and community-oriented workplaces positions real estate professionals to shape a new era of office environments that blend functionality with the diverse needs of today's workforce.

Amenity-Rich Environments

Amenities have become pivotal in influencing occupier decisions. In the Middle East, recreational amenities are highly sought after, with strong demand for food and beverage facilities (52%), gym amenities (48%), and well-being support facilities (46%), according to Knight Frank’s (Y)our Space – Middle East Focus report.

Businesses prioritise brand image, with 84% regarding real estate as a strategic element and 63% anticipating higher-quality office spaces within the next three years.

Flexibility in office space remains in high demand, with 29% of regional businesses expecting more complex real estate portfolios. While 83% of large businesses foresee unchanged working styles, 53% of small businesses and 50% of medium-sized businesses predict different work styles. Overall, 89% of organisations anticipate some degree of flexibility in their future workstyles, with 43% expecting a hybrid environment and 14% predicting mostly remote working environments.

In summary, navigating this transition requires a holistic approach, balancing economic viability with human-centric design. This paradigm shift towards flexible, sustainable, and community-oriented workplaces positions real estate professionals to shape a new era of office environments that blend functionality with the diverse needs of today's workforce.

To know more about Occupier Strategy & Solutions, please visit: https://www.knightfrank.ae/oss or contact James Hodgetts.