The rise of Teleworking and its impact on Real Estate

Specifically in France

Within the French SCPI, Office assets represent 65% of total assets.  This unprecedented crisis accelerates the changes already at work and has been able to highlight a resilient office real estate that contributes to long-term savings. The arrival of teleworking in recent months has foreshadowed an unpredictable attitude among managers usually invested in commercial real estate. In addition, teleworking calls into question a distinct form of management, some employees having difficulty re-motivating themselves to return to the office. 

In France, employers and employees in the corporate real estate market are beginning to adapt to the rise of Teleworking, known as working from home/home office. There has been an impact for the  market in terms of office space that is already being impacted by teleworking. The Covid-19 dilemma has resulted in increased occupancy rates, less building, and reduced prices in French departments that are more susceptible for teleworking. Looking ahead, it appears that market participants anticipate a long-term shift toward teleworking. 

In France, it is no longer mandatory for employers to record a minimum number of days for teleworking as of 2 February 2022, so workers may possibly return to the office full-time. Nevertheless, considering that remote work is still advocated, the vast majority of companies are proceeding cautiously.

Entry to the office must be planned in accordance with the company’s overall standard precautions as well as the Covid-19 protective mechanisms.

As we predicted in 2021, Long-term development of telework was expected for 2022, but we anticipated that it wouldn’t replace office work.

On a positive note, Teleworking improves an individual’s work/life balance for the long run. This can create more opportunities for businesses who specialize in digital platforms where they can work from the comfort of their home. Therefore, improving one’s mental health and flexibility, along with productivity, 

Offices become a place where businesses offer an abundance of services. They are a center for information and it is necessary for them to maintain cleanliness and good conditions. 

Finally, we strive to keep our offices with a sanitary atmosphere to eliminate the spread of coronavirus and keep our employees safe. As it is important to have the most efficient ecological performance, Management will have to be altered to prioritize employees. However, teleworking is a social separatism that prevents in person business interactions that can also be a financial burden. Which is why future offices should revolve around five crucial procedures:

1.   Service and promoting of social interactions

2.  Environment and health security

3.  Increased attractiveness on connected assets

4.  Proximity within work to home 

5.  Future opportunities: Trade-offs with small assets 

These different elements finally justify the optimism that reigns among managers around office assets. This typology, which represents more than 60% of total assets, can still hope to be the “preferred” asset class of managers in the months and years to come.

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Published in : Commercial Real Estate, Market Studies   By : Rock & DATA   On : July 12, 2022

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