You might think the rise of remote working would mean companies need less office space. But in London, the opposite seems to be happening.
Take HSBC. The bank announced that it would leave its huge 45-storey tower in Canary Wharf and move to a new office near St Paul’s Cathedral in the City of London that’s about half the size. At the time, many people saw it as proof that the pandemic had permanently changed office life.
But now HSBC is looking at renting additional space near its new building — suggesting it may have cut back a bit too much.
It’s not alone. Several major companies that planned smaller offices during the pandemic are now expanding again. Law firm Linklaters, for example, originally planned to occupy 14 floors in its new headquarters but has since decided to take the remaining three as well. Others, including BP and Virgin Media, have also opted for more space.
One reason is that offices are being designed differently. Companies aren’t necessarily giving people bigger desks, but they are adding more collaboration areas, breakout spaces and social areas. They are also investing in more social events, cocktail classes, exercise spaces, puppy yoga!
Another factor is how hybrid working has settled. Most people tend to come into the office on the same days — usually Tuesday to Thursday. When everyone shows up at once, companies still need plenty of space.
At the same time, businesses are trying to encourage staff back by upgrading their offices. This has led to what property experts call a “flight to quality”, with companies competing for the newest, best-designed buildings in prime locations.
The problem is that there aren’t many of these top-tier offices available, and not many new ones are being built. As a result, demand is high and rents for the best spaces are reaching record levels.
In short, even in the age of hybrid working, a good office is still very much in demand, and the good news is, Albie can help you find it!
