Post-pandemic offices need to de-densify as workers return: JLL report

OFFICES are expected to return to central business districts (CBD) after cities recover from the pandemic, but the return will likely be marked by renewed emphasis on health, wellness and productivity, according to a new report from JLL called Benchmarking Cities and Real Estate.

Even if physical distancing measures are phased out, the report showed that 37 per cent of employees expect a less dense working environment in the future, putting some pressure on companies to re-evaluate their office spaces.

Pre-pandemic, the global mean for office occupational density was 13.3 square metres per person; but in Manila, Jakarta and Mumbai, this was as low as 9.4 to 6.9 sq m per person.

The call for a de-densification of office spaces will likely affect cities with tight occupational spaces pre-pandemic, such as global business hubs Hong Kong, London and Singapore, emerging mega-hubs such as Jakarta and Mumbai, and other cities providing key business process outsourcing (BPO) services.

Office densities in these cities ranged from seven sq m per person in BPO destinations such as Manila and Bengaluru to 11 sq m per person elsewhere

But employers eager to please their workers may find it challenging to de-densify their office spaces due to sustainability considerations, increased rental costs and sectorial differences that give rise to varying pressures on office space utilisation.

De-densification would mean expending more water and energy resources for employees. In light of more ambitious climate and sustainability goals that countries and companies have set since the pandemic, de-densification efforts may compromise energy efficiency and consumption targets.

High office rental prices in London and Hong Kong may also turn employers away from such demands. Nonetheless, in cities with relatively lower rental costs such as Singapore, Manila and Jakarta, companies may be more compelled to change.

The report added that industries and sectorial differences may affect how amenable companies are to de-densification. In business hubs that support collaboration and well-being, employers will be more likely to provide greater amenities for to retain high-quality talent.

The report used a new metric of floorspace measurement, called total usable floor area introduced by JLL's Global Benchmarking Services team. By standardising methods of measurement across different regulations and conventions, the new metric will support benchmarking and allow companies and city governments to better understand space utilisation.