As of the last quarter of 2020, the global economy has only just begun to recover from the huge financial impacts that the COVID-19 pandemic has caused, and many businesses remain undecided as to how they will resume office operations.
Long-term office rental terms that require at least a few years of commitment in occupancy are making companies hesitant to continue down the path of traditional office leasing. Furthermore, the health crisis has created questions in the minds of many, in terms of how safe it would be to resume work in busy business centers and take public transportation to work.
Although the latter part of 2020 has been seeing a resurgence of people and road traffic, the bulk of the global community still chooses to work and stay home, for the most part. Hence, during the first quarter of 2021, businesses will continue to remain cautious in building decisions with regard to office space procurement, at least until the second quarter of the new year, or when the pandemic effects have been more clearly assessed.
While it’s true that like many other industries, the office real estate sector has suffered losses in demand due to pandemic health and safety measures, the serviced office sector has, on the other hand, managed to achieve 4% growth during the first nine months of 2020. This can be attributed to the speed and ability of businesses to respond to the new challenges, especially in providing COVID-secure workspaces.
Furthermore, with the need to cut financial losses, companies have been turning to serviced office spaces as the key to resuming office operations, while maintaining good safety measures, flexibility in business decisions, and cost-effectiveness.
Serviced office spaces provide more temporary payment terms, lasting only 2-3 months at minimum, wherein companies can either choose to continue or stop renting the space thereafter. The spaces often come complete with furniture and needed equipment and facilities, so that businesses can start operating right away, without having to incur the large overhead costs from setting up office. They provide scalability as well, so that companies may choose to upsize or downsize their space as needed. Additionally, serviced spaces are required to comply with the new, stricter health and safety regulations, giving occupiers the assurance that their work environments will be COVID-secure.
Another development in office space procurement has been in the establishment of more virtual offices. The continuing remote work setup has allowed for this option to be an equally viable one, especially for small businesses looking to startup or continue operations without the need for a physical office.
A virtual office space is not a physical office space; but it is capable of providing all the perks that commercial properties enjoy, such as an office address and telephone number, access to meeting rooms, and communication and administration services. This option for home offices and unconventional workspaces has become more widely accepted today, with the rapid increase in remote work setups brought about by the past year.
Right beside serviced offices, virtual workspaces have become an increasingly popular workspace solution, especially among freelancers and work-from-home entrepreneurs who still want the benefits of a ‘brick and mortar’ location without the expenses of an actual office space.
With office space trends pointing toward flexibility in payment terms, cost-effectiveness, and scalability in business operations, serviced offices and virtual workspaces are bound to see even more growth in the coming years. This may just be exactly what your own business needs, to recover and resume office operations in 2021.
We at Ezy Outsourcing Hub have been providing businesses for years with state-of-the-art serviced offices in prime business locations around Metro Manila, which have served to provide our clients with flexible, convenient, and cost-effective solutions for their individual operational needs… therefore, helping to propel their growth to new heights.
Our expertise in offshore outsourcing services to the Philippines have as well made great positive impacts on our international clientele. Learn what we can do for you in 2021 and beyond.
Contact us today.