80% of London’s had resumed working from office by the end of last year, and many more are expected to have joined their ranks since. It is an interesting statistic considering a significant percentage of the workforce wanted to make flexible working arrangements a permanent reality. This wave of returning employees has led experts to coin a new term – The Great Return.

The Great Return is an optimistic expectation that predicts most people will resume working from offices. This prediction is interesting because the lack of a hybrid workforce was a primary reason for people quitting during the Great Resignation.

However, experts predict that mass resignations and the pandemic prompted several businesses to adopt employee-friendly policies and will become a motivation to return.

The Great Return – Ground Realities

There has been extensive speculation about the ground realities for The Great Return. One side believes that a significant percentage of employees are not willingly rejoining office spaces, while others state the opposite.

Statistically, the percentage of people working remotely has dropped from 35.4% in May 2020 to 7.7% in April 2022. Additionally, 41% of employees listed lack of career development opportunities as the primary reason for quitting, as opposed to 26% who left due to lack of flexibility.

These numbers indicate that the prediction might come true so long as employers work on improving their performance on other factors.

The Great Return’s Impact on Commercial Real Estate

Data indicates that the Great Return is happening, and more people will rejoin offices in the next few months. Organizations and the commercial real estate industry understand the implications and have started preparing accordingly.

Below are the primary ways in which The Great Return has affected the commercial real estate industry:

1. Increase in Demand for Office Space

Organizations know their employees will return to the office and have made relevant preparations. There is an understandable increase in demand for office space, primarily from businesses that shifted nearly all of their operations online during the pandemic.

This demand has uplifted the commercial real estate industry and put it back on track.

2. Improvements in Office Amenities

Although the Return will happen, it won’t be without constructive changes in how businesses treat employees. Several companies understand the requirement and are trying their best to include amenities that will motivate people to return.

Some of these amenities will require structural changes in the office space, requiring investors to take necessary measures.

3. Higher Rent

The higher rent is expected given the inflation and increased demand for office spaces. The higher rent for commercial real estate has not received the same uproar as real estate, but that’s because businesses have factored it into their calculations and have made necessary adjustments.

Wrapping Up

To sum up, The Great Return will repopulate offices, and the commercial real estate industry is already experiencing a spike in demand. The demand and inflation have led to an increase in rent while establishing requirements for structural changes to make the space more employee-friendly.

The CHRE team has been reviewing the changes closely and can help you make the right investment decisions. Don’t hesitate to get in touch with our team to get started.