London Business News: Office Space Special
??Justin Wigodsky
Co-Founder | I help Founders and CEOs in all major industries find their next flexible/managed office space in London and Globally
What a week! The statistics of how fast the COVID-19 virus is ripping through the UK is breathtaking and like many business owners I am struggling to keep up as there is new news breaking every hour. I can’t believe how many people have been affected globally and with the inevitability of tens of thousands of more cases my heart goes out to each and every person affected and their loved ones.
I think I am pretty safe to say that it has been the most difficult trading week I can remember.
I’ve observed the Travel, Restaurant, Theatre and Retail sectors (and many others) as they have been blasted with the full force of the effect of the pandemic. And as one big global supply chain, this has also had a knock on effect on all of the professional services sectors as well.
In the office space industry, things are pretty decimated - albeit temporarily. Whilst there has been clear advice from Government to ‘work from home’, as there has not been a lock down - companies have been left with a choice which means that no cohesive and decisive action has been taken (yet).
Having seen years of movement towards coworking spaces, particularly in London, I can’t help but wonder how office providers with lots of open space such as We Work and Uncommon are going to fare once we get to the other side of this.
Of course, I totally understand that more and more companies will need to limit the risk to their staff by encouraging or telling them to work from home.
That said, we have helped several businesses who are relocating their offices temporarily out of London so they can continue operating and we’ve also seen a rise in requests for solo office space.
All office space providers have made adaptations and many are offering initiatives such as short term contracts, flexibility, virtual viewings - but does this go far enough? What do business owners really need to help them - and I’ve been asking the question what can Working Space London do to assist?
One thing is for sure, it is important that we all work together to pull through these difficult times, as I believe that if we do, we can only come out of the other side stronger than ever before.
It’s inevitable that in the short term you’ll see a hit; flexible space vendors will undoubtedly be impacted by the shorter-term income model.?Demand will be down as companies send workforces home.?Also,?investments in startups will be pulled meaning less?new?companies??looking for space.?That all said,?I can imagine a reasonably quick rebound in confidence and activity once the virus is under control and widespread testing and vaccinations are available. In Asia, I read that economic activity had rebounded to around 80% capacity by early March (after around a 9 week lockdown).?
Co-Founder of Future Squared | Will find & negotiate you an office space in London and UK
4 年Very interesting and well written article Justin some very valid points raised, time will tell, since your article the Chancellor has announced a number of initiatives to help businesses across multiple sectors and verticals.
International Marketing Manager | Flagstone International
4 年Great piece Justin! You’re right, every industry and sector has been affected either directly or as a knock on effect and the unfortunate news is that we don’t know how long for! During uncertain times like this business owners want to keep afloat and continue business as usual, perhaps an idea is to look into virtual office spaces, where businesses can function remotely using ever-advancing technology for communication?
Managing Director at Digital Marketing Agency Cariad Marketing
4 年Hi Justin. Hope you and the rest of the team are staying safe and well.? I think it would help if Business Owners knew whether Serviced Office Providers were planning to offer rent free periods for their current tenants to help in this difficult climate. Also perhaps sharing information about best practice steps for managing your empty office space whilst employees work from home. Hope this feedback helps :)