Business leaders predict offices to be downsized

70pc say pandemic will affect thinking

MORE THAN two thirds of Yorkshire business leaders predict office downsizing over the coming year as firms react to the coronavirus pandemic.

An independent survey of senior business decision- makers in Yorkshire by Accumulate Capital found that 70 per cent of decisionmakers believe Covid- 19 will result in more businesses downsizing to smaller office spaces over the coming 12 months.

Nearly a quarter ( 24 per cent) said they are planning to relocate to a smaller commercial space themselves and 36 per cent said their preference for commercial working spaces has changed significantly as a result of Covid- 19.

More than half ( 52 per cent) of Yorkshire businesses believe working from home will become the norm. Just under half ( 48 per cent) believe the Government’s £ 5bn investment in infrastructure and new- builds will be vital in supporting the future growth of their business.

Property development firm Accumulate Capital commissioned the independent survey of 50 senior decision- makers based in Yorkshire and the Humber.

It found that 24 per cent of Yorkshire firms are looking to relocate to a new location with cheaper rent as there is less emphasis on employees working from the office,

According to Accumulate Capital’s research, 43 per cent of businesses in Yorkshire and the Humber said their local council has provided regular advice and support

to help their transition out of lockdown.

Paul Howells, CEO of Accumulate Capital, said: “The Covid- 19 pandemic has changed the way businesses in the region look at commercial property. As such, it is important for property developers and commercial landlords to understand the changing needs of local businesses and act accordingly.

“The increase in remote working will likely see businesses look to smaller, more flexible workspaces.

“While this is becoming a popular option in places like London, regional businesses often do not have the same volume of choices available to them.

“That’s why it is vital for property developers to step up and provide the type of commercial workspaces businesses in Yorkshire and the Humber are clearly on the lookout for.”

In a new advertising campaign this week, Government messages will emphasise the benefits of employees returning to workplaces, as well as encouraging businesses to make their offices Covid- secure.

British office workers have returned to their desks at a much slower pace than staff in France, Germany, Italy or Spain, as they continue to work from home following the lockdown.

Only a third ( 34 per cent) of UK white- collar employees have gone back to their workplace, which is way behind their European contemporaries, where over twothirds ( 68 per cent) have returned to the office.

This reticence to return to the office comes as new research from Roadmender Asphalt, a Sheffield- based road repair firm, showed that workers are still deeply sceptical about using public transport to travel back to the office.

The research revealed that 69 per cent of employees would rather cycle to work than take public transport due to the Covid19 risk.