Office buildings still in hybrid mode

More than a year after the beginning of the Covid-19 pandemic, many companies still haven't decided on a working model for their employees. Some office buildings are beginning to populate again, but not at full capacity, as the hybrid working model is currently seen as the best solution. The evolution of the real estate market in general and the office segment in particular is still influenced by the evolution of the pandemic.

Vlad Damian, Head of Investor Leasing at CBRE Romania, pointed out during CEDER 2021 that there is, however, a noticeable trend of people returning to the office. "Now tenants are returning to the offices. Most of them are considering the hybrid model for the next period," he said.

Andreea Cotiga, Senior Leasing Manager of Immofinanz, agrees: "2021 is characterised by reserved optimism. We expect that a lot of companies will adopt a hybrid working model, with the possibility of a balanced mix between remote and office work. From what I'm discussing with our tenants, this could mean 1-2 days working from home."

For Emma Toma, Head of Office Division at AFI Europe Romania, this is the biggest challenge the office market is facing right now.

"For sure people will return to the office, but when and how many - this is the challenge," she said during CEDER 2021. "We are counting every month the number of people coming back to our office projects, and things are looking much better compared to the same month last year. If in December/January we had a return rate of 15-20%, now the return rate is 30-50%," she added.

Gavin Bonner, Vice President Genesis Property, believes that the traditional office model needs to change and the pandemic has given people the time to reassess what they want from their office. "Genesis did a survey and 34% of people wanted to come back to the office full time, while 36% are looking at a hybrid model. But the office is still the central point where people can be creative and productive," he explained.