The form and function of office space are changing. See below which factors will influence future office demand and accordingly the layout and design of office space.

We have analysed how teleworking likely will affect future office demand across Europe. According to the analysis, expectations are that the Nordic cities will remain among the most resilient when it comes to adapting to the new office market trends.

The Covid-19 pandemic contributed to massive lockdowns around the world. Consequently, new opportunities for teleworking emerged, prompting organisations to rethink the office concept based on employee needs. Offices of the future must support an inspiring and inclusive work environment centred around the employees.

The physical workplace remains at the centre of businesses’ decision-making, despite that 40 % of those surveyed feel they are more productive when working from home. Only 12 % of the surveyed employers agree that productivity is just as high when teleworking. Accordingly, it's all about balancing business needs and employee preferences.

Future office demand
We identifie a number of factors that are likely to influence the future office demand. These factors include flexible workspaces, alternative workstations, continued high employment in society, sufficient office capacity and sustainability.

Employees want more agile jobs where hybrid work is an option, including teleworking as well as working from the office. This development may lead to a reduction of necessary desks at the workplace and minimise space requirements. In addition, employees will also demand a wider range of workstations, including meeting rooms, quiet zones, and creative environments, each of which caters to the needs of the individual employee.

However, continued high levels of office employment will contribute to an increasing need for more office space, and the biggest challenge will accordingly be a sufficient capacity that can accommodate that a majority of employees potentially want to work from the office on the same days of the week. The solution may be alternative workstations that are more than just a desk and chair, but also allow for new workflows. The last factor that we believe will affect demand for office properties is ESG and sustainability. Companies are likely to pay higher rents for newer and more sustainable office space in the future.

The changing office concept
According to our analysis, agile workplaces are expected to cause an average 10 % drop in office demand by 2026, but at the same time, the average office space area per employee will prompt office demand to increase by 14 % due to a more diverse range of workstations.

Similarly, we predict an increasing demand for modern office space. We recognise that the office concept is changing, which affects tenants, landlords and investors in this segment.

- We’ll be using offices in a new way, and it's a trend we’re already aware of. The employees must be at the centre and the office should be designed to accommodate the needs of the specific company. The office environments as a category must be multifunctional and offer facilities such as fitness centre, cafés, creative environments, and quiet zones, says Anders Bengtsson, Partner in Copenhagen.

Read more here.