This week finance firm Hawksford announced its aim to cut its floorspace by a third before this summer and adapt its working model to enable much higher levels of home working, while converting its offices into largely shared space.
The company’s chief people officer Richard Summerfield said that the redesigned office, funded by the cut in floorspace, would be ‘unrecognisable’ and have a much more ‘trendy’ feel.
Brian McCarthy, of Le Masurier, said he felt that many other companies would soon follow Hawksford’s lead and make ‘drastic changes’ to their offices.
Other industry insiders have said, however, that they think demand for office space will continue, despite many people choosing to work from home. Dandara has completed leases for office space since the Island went into lockdown last March, and Chris Daniels, director of D2 Real Estate, believes the market for office space will not change significantly in the future.
Mr McCarthy said that companies across the world were making plans to downsize their office space and that Jersey companies needed to be prepared for that.
‘Office occupiers globally are reviewing their accommodation strategies in light of the pandemic and the “traditional office” is, in my opinion, a thing of the past,’ he said.
Jeff O’Boyle, head of property at Bedell Cristin, said he believed that commercial landlords might need to adapt heavily to changing tenant needs and that doing so could give them a market edge.
‘The pandemic has illustrated the option of remote working for many office workers,’ he said.
‘As a result, flexibility may need to be extended to leases arranged between landlord and tenant in relation to office buildings as firms begin to offer a blend of working from home and working in the office.
‘Offices are clearly here to stay but landlords will need to adapt to the changing demands of occupiers. The office-lease market may see a need for smaller space, flexible terms, serviced offices and even the innovative “WeWork” model whereby small and start-up businesses rent workstations rather than full office floors or buildings.
‘As ever, commercial landlords who are willing to take the lead and break with tradition may gain a significant competitive advantage.’
Mr O’Boyle said that flexible leases could also be useful in helping to secure the future of Jersey’s ailing high street. (Full report in The Business in Wednesday’s JEP.)
Martin Clancy, managing director of Dandara, said the company was aware of over 60,000sq-ft of office space in the marketplace.
‘This will be for various reasons such as end of current leases, improving the workplace for employees and expanding businesses,’ he said.
‘We will continue to supply the office market and indeed we have completed leases with occupiers since lockdown last march, many of whom did not have a requirement before then.’
Chris Daniels, director of D2 Real Estate, said that office space still had an important role to play in the future of most companies.
‘Office space is important for socialising, collaborating and for young people who need that interaction, which they may not get if they live alone.
‘Everyone’s situation is different and, while many companies will become increasingly flexible with their working-from-home policies, the idea of offices being a thing of the past is not true.’
Mr Daniels said the ease of access to an office for the majority of Islanders, in comparison to people in other countries, meant they would always have a place in Jersey.
He added: ‘Things will definitely change but not enough that the market for office space will change drastically going forward.’
This week HSBC announced that it intended to cut its office space worldwide by 40%.
A spokesperson for the bank said that there were ‘no immediate plans’ to reduce its property footprint in Jersey.
