Most UK company bosses expect a rise in remote working even after the coronavirus pandemic passes, and many are considering rebalancing their real estate portfolio away from city centres.
A survey by accountancy firm PwC is the latest sign of the extent to which the pandemic will change how and where employees work. Simon Hampton, PwC’s UK real assets leader, said the use of home-working during the UK’s lockdown is now filtering into companies’ longer-term real estate strategies.
“It would be short-sighted of us to think it won’t result in different-looking town centres and suburban areas in future,” Hampton said. “And this is certain to have larger real asset implications for the built environment, with developers and investors needing to navigate this changing landscape.”
PwC grilled 3,500 chief executives of client companies between June and July. Some 86% of UK respondents, and three-quarters of global respondents, expect a long-term shift to remote collaboration between employees, with more than two-thirds of UK chief executives predicting a move to low-density office usage.
A third expect to shift their offices away from city centres, although an equal proportion said they continue to favour urbanisation.
Angus Johnston, PwC’s real estate leader, said: “It remains to be seen whether office landlords and tenants can find new, more flexible models that make significant low-density space available on a basis that works commercially for both parties while retaining a strong city centre bias.”
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