As the COVID-19 pandemic continues to rage on throughout the nation, millions of employees remain at home, unsure of exactly when they will return to their traditional workplaces. In recent years, stereotypical perceptions of the office have drastically shifted, with the traditional idea of a stuffy cubicle being replaced by open plan coworking spaces filled with custom neon signs for inspiration and kombucha drinking millennials using shared facilities to work, eat, and network.
However, the veritable curveball of COVID-19 completely changed this dynamic, forcing employees to retreat to their homes and work remotely in order to limit the spread of disease. These once bustling coworking spaces became empty virtually overnight as a premium was placed on privacy and functionality, forcing the office market to react and pivot towards small and private offices available on flexible lease agreements.
This dramatic 180-degree shift raises an important question, how will the office landscape look when the dust settles? Will employees still be open to the concept of shared workspaces? Or will the potential of a new pandemic result in a permanent shift towards privacy? To answer these questions, it is vital to recognise the advantages and drawbacks of both coworking and private offices, as well as the overall demand for physical office space in a post-pandemic environment.
The Coworking Bug
The proliferation of the internet throughout the United States, and the subsequent freedom of communication that it has provided, has allowed thousands of businesses to hire remote workers. Remote work allows individuals with sought-after skill sets to acquire jobs not normally available locally, diversifying the regional economy and allowing the area to retain locals who otherwise would have been forced to move to the nearest major city. This concept is particularly prevalent in Central Oregon, with areas such as Bend being home to scores of remote workers in a wide variety of occupations.
This is where coworking spaces enter the conversation, serving as a home for remote workers who are eager to gather in centralized hubs in order to separate their home and work lives. Prior to COVID-19 these spaces were full, due to the wide range of advantages they provide to workers such as:
- Flexibility
- Cost-efficiency
- Networking opportunities
- State-of-the-art facilities
- 24-hour access (in many cases)
- Lack of home distractions
- Sense of community
These advantages led to a general increase in the number of coworking spaces in the months and years leading up to March of 2020, with some facilities even having extensive waiting lists due to extreme demand.
However, it is important to note that coworking space aren’t for everyone. Medium to large-sized businesses, as well as freelancers who may require privacy to meet clients or customers, are likely to find coworking spaces too restrictive to meet their advanced needs. Furthermore, certain individuals may get distracted by the abundance of networking and social opportunities provided by a particularly active coworking space, resulting in a decrease in productivity when compared to working in a private environment. Additionally, unforeseen circumstances such as COVID-19 demonstrate the volatile nature of coworking spaces when compared to their private counterparts. Numerous coworking spaces were forced to temporarily close their doors in response to social distancing guidelines, with many still enforcing strict rules regarding the number of people allowed inside at any given time.
But What About Privacy?
On the other hand, private office spaces can be seen to represent a more traditional idea of the workspace, one that foregoes the bells and whistles found in modern coworking hubs in favour of more personalization and privacy. These types of office spaces are often offered fully furnished, equipped, and serviced, with a wide range of amenities provided in one all-inclusive price.
When compared to coworking spaces, private offices are much better suited for larger companies looking to house their employees in one central location. Traditionally, these types of spaces were seen to be advantageous for a wide variety of reasons including:
- Increased communication within the company due to physical interaction
- World-class amenities (such as meeting rooms, reception areas, break rooms, lounge areas, kitchens and, in some cases, rooftop terraces or gardens)
- Increased concentration
- Ability to customize and brand the space to match your business
- Reduced risk of catching the common cold, as well as more serious illnesses such as COVID-19
These reasons provide a compelling argument for private offices over their coworking counterparts. However, there are some glaring downsides to such spaces, such as the costs associated, and the often-rigid lease terms provided. Whilst coworking spaces allow individuals to shift in and out as they please, private offices traditionally require more long-term commitments.
One important thing to note is that, while traditionally not the case, recent events have led to an increase in flexible offices spaces in Portland and other major hubs throughout Oregon, as landlords look to entice tenants back to physical workplaces post-COVID by offering short-term leases and bonus amenities.
Will There be a Need for Traditional Offices Moving Forward?
It may be too early to make a definitive assertion, but the office market looks to have drastically changed over the course of 2020. As many coworking spaces scramble to adapt to social distancing guidelines, and landlords look to entice tenants back to their private workplaces, it has become clear that the demand for physical workspace can taken a dramatic blow when compared to the start of the year. With businesses invest in teleconferencing technology and growing accustomed to remote work, many executives are beginning to realise that a physical space may not be as essential as previously assumed. Whilst there will always be a need to some form of physical space for most companies, the level of space required may reduce as businesses settle on rotating rosters in order to cut overheads and provide increased flexibility for their employees. The empty space created but such changes may result in an increase in subleasing or a change in how commercial space will be used going forward. Ultimately, the full impact of the COVID-19 pandemic is still unclear, and it may take years for the dust to settle.
