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_Returning to the office part two: Accelerated social and behavioural changes and what you can expect

In the second article of a two-part analysis of how risks can be mitigated as many businesses reopen their offices, Knight Frank’s London Tenant Representation (LTR) team look at what social and behavioural changes we can expect from our workplaces moving forward
July 02, 2020

As outlined in the first part of this workplace return analysis, the practical changes required when returning to the office are clear to see and easy to understand. In fact, some of the new procedures such as a tidy, empty desk policy, increased cleaning measures and a reduction in the volume of people using facilities at one time may sound like quite an appealing upshot of new occupancy guidelines to some. However, the day-to-day reality of adapting to a new way of working will inevitably present some challenges and frustrations along the way.

These frustrations will be most pertinently felt from the social and behavioural changes that office workers will be faced with. While sticking to your allocated desk and queueing to use office facilities may be easy to adapt to, resisting the urge to dash over to a colleague’s desk to ask a question or having to hold a Zoom meeting with co-workers who are within the same building may be slightly harder to implement – as they say, old habits die hard. Yet, in the same way that Covid-19 has acted as an accelerator for many existing practical changes, some of the social and behavioural changes we could see are also not new ideas.

With extensive experience advising a diverse range of different businesses on real estate solutions, our LTR team considers what you can expect from a social and behavioural perspective when you return to the office, and which changes could be around for the long-term.

"This creates an over-arching backdrop for lower carbon investment into real estate, with potential future regulatory and reputational risks from not doing so. Social investing, particularly workplace wellness should also take on a new focus following the onset of Covid-19"

ESG and wellbeing in the workplace

Another major factor of office reoccupation for businesses to consider is employee wellbeing, and how this will feed into the bigger picture of ESG. ESG investing has been on the radar for almost 20 years now, but it has risen in importance dramatically in the past few years, in line with a rising global social and environmental conscience.

Victoria Ormand of Knight Frank Capital Markets Research shares this insight from the June 2020 Covid-19 Commercial Research: “According to Calastone, ESG funds enjoyed record inflows in January 2020 to the tune of £395 million. While March saw outflows of £17 million, £334 million worth of investment flowed back into ESG funds in April. Mitigating the effects of climate change has been legislated for across multiple countries, including the UK.

“This creates an over-arching backdrop for lower carbon investment into real estate, with potential future regulatory and reputational risks from not doing so. Social investing, particularly workplace wellness should also take on a new focus following the onset of Covid-19.”

Workplace wellness will be now viewed through a different lens, a transformation from juice bars and break-out spaces, to vital measures that will enforce a sense of confidence and belief in employee wellbeing, from basics such as rigorous and increased cleaning measures and sanitisation to evaluating air quality, increasing ventilation and changing HVAC filters regularly.

"According to Intelligent Transport, 62% of people polled in a UK survey claimed that they wouldn’t feel comfortable using public transport after the lockdown"

Travelling to the office

While returning to a ‘safe’ office may be appealing, there’s one stumbling block along the way for many: public transport.

Although it is now compulsory to wear a face covering on public transport in the UK, it is still much harder to enforce social distancing on trains, tubes and buses. According to Intelligent Transport, 62% of people polled in a UK survey claimed that they wouldn’t feel comfortable using public transport after the lockdown. For those who live in major cities or non-drivers, where cars are not an option, where does it leave office life?

Many peoples’ thoughts have turned to cycling. According to the World Economic Forum, cycle to work schemes are up 200% in terms of the number of bicycle orders, while the UK transport secretary Grant Shapps announced a £2 billion package for cycling and walking to help ease congestion on public transport and roads post lockdown.

An increase in flexible working will also mean that employees are required to commute less often; however, the impacts in terms of office location, cycling provisions and even choice regarding the living location for employees are yet to be seen.

"Real estate that better allows for provisions such as a one-way system in and out of the building and on office floors, may become increasingly sought-after by occupiers"

Social distancing in the workplace

Social distancing inside offices will play an important part in reinforcing safety measures and allowing employees to feel safe at work. Some of these measures will include a one-way system around buildings, reduced capacity of people who can use lifts and meetings that are held online or outside if possible, despite attendees being in the same building.

While none of these social distancing factors are changes that were deemed necessary or important pre-lockdown, they will allow for some important questions regarding the use of office space and technology to be raised.

The dramatic growth and usage of online video-calling platforms such as Zoom during lockdown is likely to continue, replacing some larger face-to-face meetings and short-haul business travel. Similarly, real estate that better allows for provisions such as a one-way system in and out of the building and on office floors, may become increasingly sought-after by occupiers.

The London Tenant Representation team offers a refreshingly different approach by exclusively advising office occupiers across the London market, delivering optimal real estate solutions via carefully formulated property strategies and robust, impartial negotiation.