Why Commercial Real Estate Will Have a Hard Time

With more than half of the globe on some for of social distancing, lockdown or enforced quarantine, billions of people haven’t been able to go to work. Many though have transitioned to working from their home. And now a recent survey shows that people like working from home, which may be another reason commercial real estate will have a hard time going forward.

How have office workers been holding up during the coronavirus crisis? And how do they feel office life will change once workplaces reopen? Global staffing firm Robert Half surveyed more than 1,000 professionals about their current work situation and the future.

“Our lives have changed as a result of COVID-19, including how we work,” said Paul McDonald, senior executive director of Robert Half. “When companies open their doors again, ‘business as usual’ will be different. Employers and their teams have been resourceful in operating from dispersed locations, and there are going to be important lessons learned that will guide future collaboration.”

Silver Linings
Of employees surveyed, 77% said they are currently working from home. These workers were asked, “Which of the following positive sentiments have you felt with respect to your job in the past several weeks?” The top responses included:*

I realize my job is doable from home.

63%

My work-life balance has improved due to lack of a commute.

60%

I’m more comfortable using technology.

43%

I’ve grown closer to colleagues.

20%

I’ve grown closer to my boss.

19%

*Multiple responses were permitted.

Parents doing their job from home were more likely than peers without children to report having better work-life balance, becoming more tech savvy and deepening relationships with their colleagues, survey results show. In addition, 78% of all employees surveyed think they will be more prepared to support or cover for coworkers who need to be physically absent when staff begin returning to the office.

Concerns About Returning to the Office
According to the research, professionals feel some apprehension about going back to their typical workspace:

  • 56% of professionals worry about being in close proximity to colleagues.
  • 74% would like to work remotely more frequently than before the outbreak. More parents (79%) than those without children (68%) expressed this preference.
  • At the same time, 55% believe it will be more difficult to build strong relationships with colleagues if teams aren’t in the same building as much.

Business Protocol in a Post-Pandemic World
Once stay-at-home guidelines ease, the workplace will likely evolve. Of office professionals surveyed:

  • 72% will rethink shaking hands with business contacts.
  • 72% plan to schedule fewer in-person meetings.
  • 61% anticipate spending less time in common areas in the office.
  • Nearly 6 in 10 will reconsider attending in-person business events (59%) and traveling for business (57%).
  • 73% think there will be fewer in-person social and team-building activities with colleagues.

Staff expect their organization to adapt to the new normal. Workers were asked, “As a result of the COVID-19 pandemic, which of the following measures do you think your company needs to take?” Their responses:*

Allow employees to work from home more frequently

79%

Have better cleaning procedures

79%

Hold fewer in-person meetings and trainings

70%

Stagger employees’ work schedules

55%

Require employees to wear masks

52%

Change the office layout

46%

 *Multiple responses were permitted.

McDonald added, “Managers should use any time of transition to reassess priorities and make meaningful change that improves the work environment. The pandemic is causing fear and anxiety, and employees will want reassurance their employer is prioritizing health and safety.”

People like working from home and that’s a good thing for the planet and the economy but in the long term it may be a sign that commercial real estate will have a hard time going forward.