Since the COVID-19 pandemic occurrence, office spaces have experienced a great decline in demand, with work-from-home setups replacing in-office operations for many businesses. The turn of the new year 2021 still continues to see hesitation among businesses to resume full-fledged office operations, with the uncertainties that the virus has created for businesses worldwide. Hence, office rental demand will remain slow this year.
The serviced office sector, however, is the only area of business real estate that has seen some increase in demand since July 2020. More inquiries have been made by companies for the procurement of these flexible office spaces whose payment terms tend to be more upfront and don’t require long-term commitments, in comparison to traditional office space terms.
Smaller office spaces have also experienced an increase in demand, with the financial effects of the pandemic causing businesses to downsize their operational needs to try and offset financial losses through cost-cutting measures. Furthermore, inquiries for office space have lately been in greater preference for those located away from city centers, where companies feel that they can better avoid risks of the COVID-19 infection.
Another factor determining the new demand of businesses for smaller and more flexible leased spaces has been the effectivity of the work-from-home setup in enabling the continuance of company operations despite quarantine measures. In 2021, some employees will want to retain flexibility in being able to alternate between working from home and the office. Companies are finding this hybrid work model equally favorable in their current aim to cut down on operational costs, while they try to compensate for their own financial losses incurred during the pandemic.
As a result of new employee goals to attain a better work-life balance through more work-from-home setups; financial setbacks incurred by businesses in the past year; and, more than anything, the need for companies to ensure the safety of their employees during these uncertain times, it is unlikely that business centers will be returning to their pre-COVID hustle-and-bustle environments anytime soon.
That said, however, limitations in going outside of the home have lifted quite a bit, and there has been an increase in traffic on the streets in the later part of 2020. This has given rise to the possibility for companies to at least procure office spaces with flexible terms, so that they can continue as many business processes as possible within office premises.
Serviced offices, which provide an average of 2-3 month payment terms, scalability to upsize or downsize in space as needed, as well as fully-equipped spaces for starting operations immediately, are becoming the wave of the future in office real estate. The volatility of these pandemic times has only served to usher in the need for these low-commitment, cost-effective spaces that can help support companies in lessening their operational costs, while giving them the freedom to adjust their strategies according to circumstances at any given time.
Ezy Outsourcing Hub is an experienced provider of serviced office spaces for rent. We provide fully-furnished and equipped quality offices in prime business locations around Metro Manila to make it convenient for you, your clients, and your employees to travel, with the many options for transportation available within these areas. Our office spaces are in compliance with the strict health and safety regulations, post-pandemic, and our cost-effective and flexible payment terms will help your business resume operations immediately and without great financial headaches, so that you can rebound quickly toward continuing growth in 2021. Inquire with us today.