Effects of the Pandemic on Commercial Property Requirements

Will staff ever be tempted out of their loungewear and back into the office? Do they need to be?

We look at changing demands that commercial landlords and tenants may now face, and get an architect’s opinion on the future of non-residential property.

Changing requirements for commercial spaces

The pandemic has accelerated many changes affecting commercial spaces. Some of the main requirements that may impact those in the commercial property market include:

1. Spaces that enable flexible working arrangements

Except for the occasional child or pet wandering into the background of a Zoom call, or getting stuck on a cat filter whilst approaching a judge, satisfaction with remote working seems to be relatively high.

With around 30% of all workers wanting to work from home permanently, spaces that offer hot-desking, multi-use spaces and flexible contracts could allow companies to find a balance for employees that want the best of both.

2. Fluid design

Social distancing will, in the short term, mean commercial spaces and their tenants need to allow for increased space per person. Commercial spaces that put a focus on the individual, as well as emphasize creativity and collaboration, are likely to remain in the long term.

Non-residential property landlords, and any tenants, are likely to need to supply spaces that appeal to people, providing solutions that the digital space does not.

3. Useful, up-to-date technology

A speedy internet connection may have been a major selling point for offices back in 1998, but in 2021 and beyond, more will be required to tempt workers and companies back into the physical world.

In the short term, well-equipped offices that facilitate a mix of remote working and a smooth return-to-office process seem to already be sought after. In the long term, technology-heavy, smart office buildings that reflect a company’s ability to support employee wellness, sustainability and creativity could be in high demand.

4. Changing commuting patterns

It’s no secret that Londoners using the Central line (especially in Summer) will have dreaded the commute for years. The pandemic has highlighted this is, in fact, a view that 49% of workers across the UK share.

In cities which are highly dependent on transport, a slower re-entry into the office is expected, with a lack of commute being the most-quoted benefit of working from home.

Flexible working hours to avoid the early morning rush, and spaces which allow for people to come and go, could be key to providing great commercial spaces. Otherwise, it’s only another nine years until the Central line gets air conditioning.

Changes to the Use Classes Order

Fast-tracked due to the pandemic, changes to the Use Classes Order were put in place on 1st September 2020.

Premises used for shops, restaurants and other leisure facilities, such as gyms, can now interchange and even be dual-use. The prospect of having a restaurant in a gym would, no doubt, be a great motivating factor for many reluctant gym-goers.

These changes were intended to help businesses adapt to changing requirements, such as those listed above, and ultimately slow the decline in demand for commercial property.

An architect’s insight into the changing requirements of commercial clients

Oliver Cradock, Architect at Paul Cashin Architects, has said: “There remains a lot of uncertainty on the effects of the pandemic and what its longer-term implications might be. This uncertainty could lead to different trends in the requirements of commercial clients; a possible duality between caution and risk aversion contrasting with those who see opportunity.

“The pandemic has caused prolonged, seismic shifts to the way we live, work, interact with one another and function in society as a whole. Over this period, we have had little choice but to adapt and be flexible. I believe that through needing to adjust and modifying our behaviour, society has shown itself that it can. There is an opportunity for non-residential spaces to tap into this mindset.

“Previously struggling spaces or those held in low regard, such as declining high streets or uninspiring workplaces, have an opportunity to reinvent themselves as restrictions are lifted. Non-residential spaces can provide a relief and renewed impetus for people to return to physical society and to work, with a renewed sense of care, acknowledging the importance of our social relationships and spatial needs, as well as physical and mental health, and wellbeing.

“The effects of the pandemic, primarily the lockdowns, have highlighted our interconnection with nature. With climate change already near the top of public consciousness, requirements and aspirations for sustainable spaces could also see a welcome increase in momentum.”

If you are a commercial landlord or tenant, get in touch with the team at Carlsons Solicitors for trusted legal advice. Our commercial property solicitors have a wealth of experience at getting the desired results for clients in a variety of high-profile matters, whether buying, selling or renting commercial properties.

Connect with Oliver Cradock (Architect) on LinkedIn: https://www.linkedin.com/in/oliver-cradock/

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