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Home Business NewsBusiness Seven in 10 firms predict office downsizing in the coming year

Seven in 10 firms predict office downsizing in the coming year

by LLB Editor
18th Aug 20 8:07 am

A new independent survey of over 500 senior business decision-makers by Accumulate Capital has revealed how the COVID-19 pandemic has affected UK businesses and their commercial property needs.

The survey found:
– 73% of decision-makers believe COVID-19 will result in more UK businesses downsizing to smaller office spaces in the coming 12 months

– 37% are planning to relocate to a smaller commercial space themselves

– 50% acknowledge their preference for commercial working spaces has changed significantly as a result of COVID-19

– 58% of business believe working from home will become the norm

– 45% do not expect their employees to all be working in the office at the same time

Senior business decision makers expect COVID-19 will result in more businesses downsizing to smaller offer spaces over the coming 12 months, new research by Accumulate Capital has revealed.

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% expect businesses to downsize as a result of the coronavirus pandemic.

Almost two-fifths (37%) 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%) are looking to relocate to a new location with cheaper rent.

Half (50%) of businesses admitted their preferences for commercial premises have changed. The majority (58%) believe working from home will become the new norm, while 45% 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% 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: “Today’s research demonstrates just how COVID-19 is affecting both the UK’s businesses and its commercial real estate market. As a result of the pandemic, businesses clearly no longer look at offices and commercial property in the same way, which will have significant implications for property developers and commercial landlords.

“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.”

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