Joanna Bourke: Derwent London is right to think working from home won’t last forever

As the chief executive of one London-listed property giant put it today: don’t assume that the current low levels of leasing deals mean companies don’t want offices. Caution over the state of the economy, not the WFH trend, is what is causing some executives to hold off new HQ decisions.

 In the medium-term, after lockdowns ease, demand from a number of staff and businesses for office space will improve.

 We all know it is harder to do your job at home.  

 A kitchen table is a fine place to be, but you don’t want to sit by it all day.

 As winter draws in, it’s chilly at home. The other half speaks too loudly on his own WFH calls, and the internet is patchy. That all makes meeting deadlines that much harder. We crave our work desk in town.

For some Londoners, they miss the office because home is not suitable:  limited space can make the working day tricky. There is also mental health to think about, with some people wanting to be around their colleagues more and not stuck indoors.  

Coming with up creative ideas and training is also easier in offices rather than a Zoom video chat.

In the future it is likely a mixture of home and office working will be encouraged, something I would be all for.  

And when companies do sign for offices, which they will, many will fight for the newest space to entice staff. As one industry boss puts it, “s**tty” older buildings with rickety staircases will look less attractive to employers. They will want space that promotes social distancing, looks great and attracts top talent in London.

According to property agent Savills, there is around 13.2 million square feet of demand in central London for offices currently. Tech and law firms are among those looking past Covid regarding office requirements. 

Meanwhile, analysts at Jefferies calculate that of all the London offices under construction, 60% is taken, “so there is an emerging scarcity and the pre-letting market is expected to be brisk”.

Derwent London is right to look at investing in more London developments.