Infection-Resistant Offices - Analyses of the Impacts of the Pandemic on Office Buildings and their Market

Thomas Vogl

ERES from European Real Estate Society (ERES)

Abstract: Time and again, after crises in the course of history, stricter building regulations occurred and not only had a sustained impact on the occupants but also the operator and the builders. For example, after the fire of 1942 in the Coconut Grove nightclub in Boston, outward-swinging doors and emergency exit signs were implemented and became the international standard. Unbreakable glass and concrete core constructions resulted from the experience of 9/11. The corona pandemic, which has been spreading since the end of 2019, presented unforeseen challenges and uncertainties, not least for institutional investors of office properties or Corporate Real Estate Managers. The home office, which was previously often negative, had to be implemented rapidly on an unprecedented scale and led to very low occupancy rates in office buildings. Companies ran into cash flow problems and government assistance was necessary to cover the rental costs for unused workspaces. Despite positive developments for a vaccine, experts predict a permanent upheaval in the design and planning of workplace demands. This analysis of the latest literature is focusing on the physical and organizational provisions being debated in terms of infection-resistant work environments and the associated impacts on the real estate office market are deducted. As it's now well-established that COVID-19 transmission commonly occurs in closed spaces by particles containing the virus, the demands for stricter hygiene measures and effective heating, ventilation, and air-conditioning (HVAC) system could pave the way for a new type of office with a hospital-like character. The predicted increase of remote working concepts ensures (social) distancing, but increases the need for digitalization and leads to low occupancy rates and therefore reduced demand for office spaces. Alongside these aspects, physical implementations in existing office buildings like high-walled booths, wide corridors, one-way traffic, and air inlet systems could influence construction costs and office fit-outs. The line of discussion will focus on the predicted solutions for infection-resistant offices and the impact on the real estate office market which are associated with their implementations.

Keywords: Costs; Office; Pandemic; Workplace (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2021-01-01
New Economics Papers: this item is included in nep-hea, nep-isf and nep-ure
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