Analysts say rumours of the demise of the traditional office space appear to have been greatly exaggerated.
Rumours of the demise of the traditional office space in light of the current coronavirus pandemic appear to have been greatly exaggerated, according to global powerhouse PwC and other leading companies operating in Dubai.
According to the 2019 Global Workspace Survey from IWG, 50 percent of global employees work outside their office’s main headquarters for at least two-and-a-half days a week.
It also revealed that when faced with two similar employment offers, 80 percent of employees would turn down the one that didn’t offer flexible working.
And that was before the onset of coronavirus.
Earlier in the summer Google announced plans to keep 200,000 full-time and contract employees working remotely until at least July 2021.
While Facebook CEO Mark Zuckerberg said the world’s largest social network would start “aggressively opening up remote hiring”, expecting roughly half its workforce would work remotely over the next five to ten years.
PwC has championed working from home and remote working for some time, but Mona Abou Hana, chief people officer at PwC Middle East, told Arabian Business there is definitely an appetite to return to the office.
She said: “The truth of the matter is that, away from the office, we depleted our social capital – and it makes sense when we think of ‘Zoom fatigue’. We all had to overcompensate for being physically apart by booking meeting after meeting. The lines were blurred between life and work.”
PwC’s commitment to ‘bricks-and-mortar’ was cemented long before the outbreak of Covid-19, with a decision to move to an entire new block in Emaar Square.
That remains, despite the continued presence of coronavirus.
“We’re really excited about going back to the office, and though we are only at about 50 percent capacity at the moment, we’re able to work two-three days a week in our new home and the remaining days wherever suits us,” added Abou Hana.
According to the Dubai Office Market Update for Q2 2020, released by Knight Frank Middle East, prime office rents across Dubai fell 6.8 percent in the year to Q2 2020, whilst Grade A and citywide rents fell by 5.9 percent and 7.8 percent respectively over the same period.
Market wide vacancy in Dubai’s office market registered at 18.7 percent as at Q2 2020, down marginally from 18.8 percent in Q4 2019.
As reported by Arabian Business earlier this month, ICD Brookfield opened its doors in Dubai International Financial Centre and welcomed its first wave of tenants, including Julius Baer, Natixis, Latham & Watkins and Akin Gump.
The 53-storey, 1.1 million square feet commercial property offers dining, retail and community spaces alongside Grade A workspace.
“We are confident that as the anxiety surrounding the pandemic subsides vibrant physical workplaces will remain in demand. In our view, companies value the power of in person collaboration in shaping a dynamic corporate culture, and their employees do too,” said Khalid Al Bakhit, chairman of ICD Brookfield.
Currently there are estimated to be 29 active projects within Dubai, worth in the region of $4.85 billion, with delivery dates up to 2024, which are either being executed or in the study or design phase.
Real estate outfit Allsopp & Allsopp has placed its faith in Dubai’s office market this week in signing the lease on its eighth office since opening in 2008 – on the 25th floor of Vision Tower, only one floor below their current headquarters.
The company’s workforce has increased by 123 percent over the last four years, with job applications rising to record levels post lockdown.
CEO Carl Allsopp explained that more office space was needed to cater to with the ever-expanding team, although he conceded that it would be different from the more traditional models.
He told Arabian Business: “Our expansion includes flexible working, however, the core operations require space for training, our support staff and client meetings for clients who still prefer to meet in person whilst following the required guidelines.
“We envisage the future of our office spaces as ‘hubs’ – a place to work from for small periods of time or for client meetings, as opposed to a permanent place of work.”
