Newsec Property Outlook: No death of the office in sight
In this edition of the Newsec Property Outlook, Newsec looks at some of the changes that the future holds for office space, and highlights a few lesser known trends that will come to impact the office market – in markedly different ways than those that are currently the talk of the town.
Newsec can conclude that trends within flexibility and efficiency, sustainability and geographic location will impact the office market going forward.
KEY INSIGHTS
- Newsec expects that the average worker will work from the office for 3-4 days a week post-pandemic, but the office needs to become more efficient, modern, flexible, and have more meeting space.
- The office volume remained strong in 2020, and the segment accounted for 25% of the total transaction volume in the Nordics & Baltics.
- A trend that has been enhanced further by covid-19 is positive net internal migration to regional cities across the Nordics. Newsec can conclude that office developers have built a lot less in major and regional cities than the capital cities, even per capita, meaning there is substantial growth potential for the office market in these areas.
- 90 percent of coming office projects in capital cities will have international environmental certifications, while only 70 percent will have these in regional cities. BREEAM is most popular in capital cities, 64 percent, but the health certification WELL, 4 percent, has strong potential to grow.