As we enter the new year, many of us will be happy to wave goodbye to 2020, but as we’re all now well aware, the coronavirus crisis will rumble on in to 2021 and beyond. The commercial market is one area where its consequences will be particularly profound.
The city is dead, office spaces are empty, and workers are settling in to working from home.
Pret A Manger recently announced 1,000 job cuts and 30 store closures given their heavy exposure to these city centre locations which are now deserted and commercial property has taken a massive hit as a result. Companies are starting to realise that they can work in a more distributed and remote way. They’re either moving fully remote or they’re accepting that a significant portion of their workforce will be fully remote in the future. Twitter recently announced full remote options for ALL of their workforce.
Where does that leave the commercial property market in 2021?
In a tricky place. Despite the Government’s best efforts to get people back to work physically, ultimately the people (not necessarily business owners) will decide. The government will likely release a scheme to promote workers going back into the office to boost the economy and revamp places like the aforementioned Pret.
Country living with remote working is the dream for some, yet some can not wait to return to their office. It’s the same for employers too! Naturally, some jobs are only possible whilst physically present, this will likely put a financial strain on certain commercial property areas.
2021 will see the demise of many companies and likely some of you reading this will be affected and if you are considering selling your commercial property – do get in touch with us to see if we can help you.