In most cases, commercial real estate is considered as a more lucrative and stable investment than residential property. But lockdown measures during the outbreak of COVID-19 pandemic has lead to more and more employees working from home. With so many people working from home, large companies are discovering that they don’t need so much office space. Many companies are considering surrendering a part of their rented office space as they look to deploy work from home practice for employees even after the lockdown ends. That is the way work-from-home culture has become the new norm sweeping across the Vietnam business community.
Apart from maintaining physical distancing and complying with lockdown measures to curb disease spread and keeping employees safe, this move will also substantially reduce rental costs. This new way of working has led to large number of office space to be vacated after the outbreak of COVID-19 pandemic. Some companies are cutting down more, even up to half of its office space.
Co-working spaces sales are also affected by COVID-19. These spaces — unlike traditional offices that can require 3-year or 5-year terms — mostly operate on short-term leases, making it easier for tenants to walk away and leaving office-sharing companies unable to pay landlords. The increase in the number of people working from home or remotely limits the growth of the market, make many co-working spaces have become ghost towns.
Though demand for office space will come down, it is not expected to crash. The need to de-densify office spaces to maintain social distancing would compensate for any possible dip in demand. Companies are expected to modify their offices to suit new norms and guidelines.
Many employers will need to scale up the usable area for each employee. It is expected that there will be a surge in demand for redesigning office spaces to maintain and incorporate statutory guidelines or international standards and practices. Companies will make changes in their offices depending on their work-from-home policies.
In addition, the development of sustainable coworking spaces shall be a major trend shaping the coworking spaces market. Sustainable practices adopted by the coworking space providers offer substantial benefits and are economically feasible. Thus, sustainable coworking space is a key trend in the coworking spaces market. For those reasons, it could be hopeful of a quick recovery when the pandemic ends.
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