Office 2.0 economic and organizational aspects of home office practice

The topic of new office formats is gaining more and more popularity, not least because of the long forced period of work from home, which has led many companies to rethink the way they operate. But even before the pandemic put office space in a new light, large corporations began experimenting with various innovative Office 2.0 concepts. We invited Verka Petkova-Shekerova, Business Development Director at Colliers International, to discuss all these changes and how the future of office space looks like.

What trends define the development of office space in recent years?

Over the last 15 years, due to various global factors, there has been an ongoing discussion about the drastic change in the use of the offices. From the Google office entertainment model, through IBM's all-remote mode, all of us as experts or employees expect some radical change. Until recently, behind every corporate model was on the one hand business logic, on the other hand, an internal industry competition - prestige or attractiveness for talents.

Many "modern" models were gaining momentum - agile working, neighborhood setting, biophilic designs, etc., which became popular, but did not work for everyone, and required a serious investment to be implemented following the specifics of each organization. However, after the first epidemic wave, we became participants in one of the largest social experiments in terms of way of working and working space.

What changes are directly related to the pandemic situation in the last eighteen months?

There is more and more talk about the hybrid model of work and perhaps for the first time the positive economic effect of such a model for companies is not the leading reason for the change. Instead, employee security, the ability to perform concentrated work from home or from specific office areas as well as the ability to do brainstorming or creative activity live in the office with colleagues, and all this without being hampered by the available infrastructure are seen as driving factors.

According to your observations, are there any specific challenges for companies related to the hybrid working model?

As the saying goes, "the devil is in the details," which is why we see two areas in which organizations find it difficult to cope to date. The first is related to the predictability of office visits, how often employees will be there and how to ensure that they can visit spontaneously without overcrowding the office space. Hence the second problem - what should be the size of the office and what exactly are the functions of the premises in it concerning the new realities.

From an expert point of view, we can say that the era of copycats is coming to an end. The decisions of the companies are becoming more and more specific with more time and resources allocated for a detailed needs assessment. In general, we observe three approaches in the current situation: some companies wait for their employees to return to the office without making much change, with the idea of ​​empirically proving the working model; others make moderate changes or pilot projects, and there are also the companies which used the last months to completely transform the spaces by introducing a lot of new technologies and turning the office into a social space.

Does all this lead to lasting changes in the market of office buildings and spaces in Bulgaria?

The pandemic affected the other main factor in the office market - landlords. The good news for us in Bulgaria is that the building stock is mostly made of modern, high-tech buildings. The owners were able to adapt the maintenance and operation of the offices and common areas to ensure the greatest possible comfort for tenants and their employees. The location and concept of the buildings will continue to be important decision-making factors for companies. Several more aspects will be added - air quality and systems ensuring environmental safety, technologies, and the possibility for fast and trouble-free reformatting of the spaces.

On the other hand, providers of flexible workspaces are also playing an increasingly active role in the 'new work model'. The co-working segment, which until recently was perceived as more focused on freelancers and startups, may be the ideal partner for corporations and landlords to provide a buffer for the unclear size and function of workspaces.

Certainly, the new ways of working will require organizations to be flexible, prepared to manage the attitudes and behaviors of their employees, and aimingto be "smarter and greener".

Colliers International is a global leader in real estate management and investment. With operations in 67 countries and over 15,000 professionals, the company provides expert advice to real estate buyers, owners and investors.