Judith Norbart: Office market at crossroads, take the right exit
This column was originally written in Dutch. This is an English translation.
By Judith Norbart, Director IVBN
Hybrid working has permanently changed the rules for office space. The office is no longer a natural workplace, but a conscious choice. But then it must be an inspiring environment that stimulates cooperation and social interaction.
An unforeseen effect of stricter supervision of pseudo self-employment is that many freelancers are considering returning to salaried employment. Although this is particularly visible in sectors such as healthcare, delivery services and construction, it is also expected to affect knowledge workers. These professionals are returning to employment and thus to the office. In this dynamic, in which reduction and expansion alternate, the question arises as to what this area of tension means for the future of office real estate.
Changing ways of working have sown doubt about the future of offices. Yet in the Netherlands, the return to the office after the COVID pandemic has already been more strongly pursued than in many other countries. This has not only been encouraged by employers; younger generations themselves indicate that they actually like coming to the office. For them, the office must offer more than just a workplace. They want an environment in which cooperation, connection and growth come together. This shift shows that the demand for offices is changing, but not disappearing – provided offices meet the right conditions.
Ecosystem
The changing demand for offices is confirmed by research. Cushman & Wakefield recently reported scarcity in the top segment of the office market and a decline in vacancy to the lowest level since 2000. Although outdated offices in poorly accessible locations are certainly losing ground, this mainly makes it clear that high-quality, sustainable buildings in prime locations remain in demand. Demand is not disappearing, but shifting. Offices are no longer just functional workplaces, but also ecosystems that promote creativity and connection. Especially in the ‘war for talent’ that employers face on a daily basis, they are more than willing to use their office to connect with the changing needs of employees.
Sustainability and flexibility
Sustainability is no longer a choice, but a must-have. It lowers costs, reduces the ecological footprint and creates healthier workplaces. At the same time, it strengthens the social role and image of companies. Sustainable housing is therefore the foundation on which future-proof office real estate must be built.
Flexibility is another indispensable pillar. Employers want to respond to the changing needs of their employees. They are not just looking for a workplace, but for inspiring environments with a good mix of co-working spaces, meeting rooms, quiet workplaces and informal meeting areas. For investors, this means investing in buildings that effortlessly meet these changing user needs. This is the only way for these offices to remain relevant and attractive.
One thing is clear: offices are not disappearing, they are evolving. Demand is shifting, but remains strong – provided offices meet the high expectations of modern users. This offers an opportunity for investors: investing in sustainable, high-quality offices is essential. Those who choose the right turn now will take the lead in shaping the office market of tomorrow.
