Senior business decision makers expect COVID-19 will result in more businesses downsizing to smaller office spaces over the coming 12 months, according to research by property firm Accumulate Capital.
The property development firm commissioned an independent survey of more than 500 senior decision-makers from businesses all over the UK. It found that 73 per cent expect businesses to downsize as a result of the coronavirus pandemic.
Almost two-fifths (37 per cent) of decision-makers said their business is planning to relocate to a smaller commercial space in the next year. With there being less emphasis on employees working from the office, the same number (37 per cent) are looking to relocate to a new location with cheaper rent.
Half (50 per cent) of businesses admitted their preferences for commercial premises have changed. The majority (58 per cent) believe working from home will become the new norm, while 45 per cent of businesses do not see a situation where all their employees will be working in the office at the same time.
Accumulate Capital’s research also revealed that 57 per cent of businesses will still rely on a physical workspace in order to network and collaborate with partners and prospective clients.
Paul Howells, CEO of Accumulate Capital, said: “The increase in remote working will likely see businesses look to smaller, more flexible workspaces. The days when a company would own or rent an office with a desk in it for each and every member of staff are coming to an end – in reality, this trend was already taking shape, but the coronavirus crisis has greatly accelerated it.”