The Next Chapter 2021: Foreword
Some have called 2020 “the quickening”. The Covid-19 outbreak and subsequent containment measures have certainly served to intensify, amplify and accelerate trends. The reach of technology into the working day, for example, has leapt years ahead in a short space of time.
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Digital connectivity has offered a lifeline to many, with the switch to remote working meaning survival for countless businesses. The world of work has undoubtedly been profoundly altered by the experiences of the past 12 months, but with the accelerated pace of change comes opportunity. Transformation always follows dislocation.
So, what will define the next chapter?
The response to the Covid-19 pandemic has shown that employers can adapt to flexible working arrangements. This largely successful transition has led some to announce the death of the office. This proclamation, though, fails to understand the benefits that offices provide, such as creativity, collaboration, culture and supporting staff wellbeing and development. After more than a year of limited office engagement, many firms are now understanding the deterioration of these intangible attributes, while also conscious of the advantages that a flexible approach has afforded. Future choices will therefore be less binary. Not hybrid but tailored.
Moreover, an understated attribute of the office is its role in the creation of business communities, both within the immediate building envelope and as part of a wider cluster. This is particularly true of centres of high knowledge and research which thrive on innovation and a highly skilled labour force. Technology and life sciences have shown resilience to the considerable headwinds generated by the pandemic, and will underpin future growth in the region. Our Innovation Index takes a detailed look at how key south east centres perform in terms of catalysing innovation. The drivers and sources of demand are changing. The importance of the property industry and workspace providers gauging the mindset of those that will be using the space has never been greater.
"The time to address climate change is shortening and the obligations bestowed on organisations building."
Responsibility will form a large part of realignment with the end user. The time to address climate change is shortening and the obligations bestowed on organisations are building. The built environment holds a central role in net-zero realisation, with developers and investors targeting efficiencies through design, construction and operation, and we have explored how the debt market also has a role to play. Organisations may take less space, but it will be best-in-class and align with strategic objectives such as environmental responsibility. Quality rather than quantity will therefore prevail in 2021.
Without question, Covid-19 has challenged businesses and society to an extent previously unimaginable. The full extent of the impact of the pandemic is yet to be understood, but it is clear that the consciousness of organisations and, crucially, the built environment has broadened. Climate, Connectivity and Community will be central themes that define onward action.
Perhaps the best descriptor of the past year is not the quickening, but “the awakening”.
Emma Goodford
Partner, Head of National Offices
emma.goodford@knightfrank.com
Simon Rickards
Partner, Head of South East Offices Capital Markets
simon.rickards@knightfrank.com