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Will there be a need for office space in the future?

09 August 2021

Will there be a need for office space in the future?

The events over the last 24 months have shaken things up in the world.

The first time that our generation has ever had to face a pandemic.

And although the fight is still not over, we see glimpses of societies around the world slowly moving towards normality in a new era of precaution.

While the world continues to adapt to this new norm, so do businesses and how they continue with their operations.

Remote working has fast become the new norm, thanks to the available technology that has allowed businesses to keep their operations moving forward in a virtual environment.

And to the surprise of many, it has proved to be an efficient solution to continue trading in this new scenario.

But at what cost?

The pandemic has accelerated the remote working model.

On the flip slide, it has quickly shown its limitations and the importance that an office setting and personal interaction play.

Subject matter experts state many mixed opinions.

On the one hand, you have the younger talent pool who are hungry for their career, eagerly open to receiving valuable lessons that come from day to day personal interaction, as well as the social life that comes with it.

On the other, the more senior and experienced, who have settled down and have children, welcome the notion of continuing working from home.

So, where does that leave the future of office space?

Will remote working become the new norm?

If so, what are the downfalls, and how do they impact business operations and employee engagement?

Although we cannot speak for all the workforce, and opinions certainly differ based on industry, our thoughts are from personal experience and feedback from our tenants.

Most recently, we have witnessed more employees returning to office space on a more frequent basis.

And the general sentiment is one of relief and satisfaction.

With added precaution and slight restructuring of office space, the social interaction not only has raised spirits but has brought on additional motivation that can be absent when working in silos.

An office environment naturally brings a sense of collaboration and experience that lacks remote working.

Regardless of the amount of technology available, human interaction is always an essential part of business and professional/personal growth.

Yes, times have changed.

Office space requires some form of adjustment to ensure the safety of its employees.

Which is the primary concern of businesses.

We have seen many examples of companies developing creating solutions, both the office space and working schedules, ensuring safety precautions are adhered to, whilst maintaining healthy social opportunities.

Whether this is part remote or part office-based, our tenants understand the importance of human interaction in a thriving business.

At Central Park Towers DIFC, we also understand the importance of social interaction and want to play our part to ensure a motivational atmosphere.

That's why we have also implemented "out of work" social events to build a community atmosphere.

An atmosphere that is clearly absent in remote working.

Office space or no office space?

At the end of the day will depend on the business and its industry.

Whilst remote working may be a solution, it is impossible to replicate the social office environment that contributes heavily to learning, development, and ultimately, motivation.

Will it be the same as before? Definitely not!

Times are different.

Different doesn't necessarily mean less.

We are social creatures and depend on human interaction to develop, be inspired and achieve our goals.

And an office space provides that community environment to thrive, both in business and personal development.

If you want more information on how Central Park Towers DIFC and its tenants are bringing the community back together once more, feel free to reach out to info@centralparktowers.

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Why Tenants In DIFC Move Offices

21 June 2021

There are many reasons why DIFC corporate companies consider moving their office space. Their leasing agreement is up for renewal and in search of more attractive financials. Business is on the uprise and needing more office space to continue their growth. Or, in some cases, needing to downsize as remote working continues to be an upward trend.

Over the last couple of years, over 90+ companies have moved their corporate offices to Central Park Towers DIFC. Each of them has their reasons as to why they have moved.

In most cases, you would think that the financials would be the deciding factor.

Surprisingly it didn't top the list for why tenants in DIFC are moving offices. So, what other factors would they prioritize if not financials?

Here are the top reasons why DIFC tenants have recently move their offices:

  • Access To And From the Tower
  • Tenant & Visitor Parking
  • Single Owned Building vs. Individual Unit Owner
  • Financial or Leasing Incentives 

 

Let's dive into a little more detail about why these considerations are on the priority list of major corporations when deciding to move offices.

Access To And From The Tower

Time is such a valuable asset.

When it comes to business, like they say, "time is money".

In our personal life's, it's a precious and limited asset.

It's something that we cannot put a price tag on.

Company leaders understand the value of time and how it impacts productivity and work/life balance. The location and entry/exit points of a DIFC tower can be the difference between long days and productive days.

It sounds trivial, although it all adds up if you consider unnecessary hours spent in traffic congestion around DIFC, multiplied by 365 days!

That's why many companies have chosen to move their offices to Central Park Towers DIFC. It's privileged location has allowed these leaders and their teams to cut time wastage significantly.

The seamless access in and out of Central Park Towers DIFC allows tenants to easily plan productive timings without factoring in time wastage.

It may not seem like the obvious choice. However, location combined with accessibility to and from the office is high on the list of reasons that have impacted DIFC tenants' decision to move their office.

Tenant And Visitor Parking

As simple as it seems, parking facilities can play a significant role in deciding where best to host your office space.

A consideration that doesn't seem that compelling at first glance. Yet, it can become an unnecessary frustration for both employees and visitors. Limited parking in DIFC for both tenants and visitors is a common frustration shared amongst the community.

Combining the access to and from the tower with flexible parking facilities for both tenants and visitors can be a benefit that is hard to match.

The fact that we offer above average tenant parking and 3-hour complimentary visitor parking have played a crucial role in the decision-making process.

A perk that tenants appreciate its value.

The Ease Of A Single Owned Tower

Addressing all your enquiries through a single source naturally provides an increase in efficiency and flexibility. Agreements, requests, approvals, maintenance, suggestions, questions, concerns…Available under one streamlined process making any request quick and straightforward.

Another critical benefit of single landlord ownership is the flexibility that it provides. Particularly when considering upgrading or downsizing based on business requirements. Under the one ownership simplifies the process and available options.

A tower with a single landlord may not be the first thought when considering moving offices, yet it has proven to be one of the most valued benefits.

And can save you time and money in the long run.

Lastly, The Financial and Leasing Incentives!

[embed]https://www.youtube.com/watch?v=ibGShOGgrzE[/embed]

Although it didn't feature at the top of the list, financials play a crucial role in moving offices.

Among moving costs, fit-outs, etc., leasing costs per square foot is, of course, the primary metric. But understanding the complete picture of the financials doesn't stop there.There is one other factor that directly impacts the financials.

Leasing incentives!

Many towers in DIFC offer free leasing months that serve as an incentive to support the costs associated with moving offices.

And are primarily based on a time commitment. The longer the commitment, the greater the incentive. Here is an example of the direct impact these leasing incentives can have on the financial picture:

e.g. Central Park Towers DIFC

  • Fully furnished base leasing per square foot: AED 290
  • 5 Year leasing agreement = 10 complimentary months leasing incentive
  • Average leasing cost per square foot: AED 242

Visit this link to see Central Park Towers DIFC offices

That's a 16% reduction in leasing cost, multiplied by the square feet, multiplied by 60 months; that's a generous saving that supports the bottom line.

When considering the financials, there is more at play than just the cost of the base square foot.

Favorable leasing incentives can make all the difference in the financials.

Conclusion

Diving deeper into these main reasons, we understand that it's not only financials that are the defining factor when considering moving office space. Flexibility, accessibility, location, customer service, facilities, incentives… All play a crucial role in the decision making process.

Each company will have their priorities and what they consider to be essential when establishing an office space. Understanding the benefits beyond the financials can, in turn, be financially beneficial in the long run.

If you would like more detailed information on the complete list of benefits tenants considered when moving to Central Park Towers DIFC, please contact me at nemo.stojanovic@centralparktowers.ae.

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Which office category is best for you?
Shell & Core, CAT A or CAT B?

07 June 2021

There are many reasons why you're considering moving office spaces.

Optimized location for business activities, cost-saving, expansion plans, downsizing, etc.

Whatever the reason, the key question to consider is “What is the right office space for you?”

Shell & Core, Fitted or Furnished?

Seems pretty straightforward...

But there are a few things to contemplate before committing to any leasing agreement.

Let's dig a little deeper into each option to see which is best suited to your needs.

The flexibility and lower leasing costs of Shell & Core, but...?

As the name suggests, Shell & Core is the blank canvas to your masterpiece.

A basic infrastructure that gives you the flexibility to develop the office that will lead your company into the future.

But before jumping at this option, there are 2 key factors you should consider:

  • The required size of the office space
  • The time you’re willing to commit to your leasing

 

Shell and Core is the ideal choice if you’re in the market for office space anywhere between 2,000 sq ft to 100,000 sq ft. and you can build and design all aspects of the perfect workspace, Shell & Core is your option.

Even though monthly leasing costs are more financially beneficial with Shell & Core, to justify such an investment, we recommend at least a 4-year leasing commitment.

Curiosity… Did you know that at Central Park Towers DIFC, you could be eligible for a fit-out contribution? Find out more, click HERE.

Want flexibility but don't have time to waste? Fitted (CAT A) is for you!

The Fitted office option on many occasions can be misinterpreted.

So before getting into details of whether fitted (CAT A) is right for you, let’s first establish what's included:

  • MEP Installation
  • Suspended Ceiling
  • Lighting
  • Air Conditioning
  • Flooring

 

Essentially providing a functioning open workspace with the flexibility to install the functional design and finishes; such as individual offices, meeting rooms, dry pantry, etc.

This category is a very attractive proposition for those eager to get a functioning office space in as little time as possible, yet still allows for customization.

While you can expect monthly leasing costs to sit at the mid-range point...

Minimal investment is required and will depend on your office requirements.

We recommend fitted as the best fit for companies that are looking from anywhere between 1,030 sq ft to 5,000 sq ft, and who are after the possibility of customizing their office space with low investment costs attached.

Ready to Move-In with CAT B ( Furnished )

This is more of a straightforward office leasing option available.

A furnished office space that offers a ready to move in model.

Offering limited to no customization opportunities, there are still many upsides to furnished office space.

It’s the preferred option for smaller and up-and-coming companies that are looking for a hassle-free move-in.

Another upside to CAT B is Flexi leasing terms, removing any sort of long term leasing commitments.

This can be an essential element for companies that are on the growth wagon, who may need to upgrade their offices in the short term as their business continues to grow.

Considering the plug ‘n’ play model of CAT B, tenants can expect higher monthly leasing costs than the other options although no initial investment is required.

Still not sure which is the best office option for you?

Now that we have covered all three corporate office leasing options.

The question remains... “What’s is the best option for you?”

There is no one simple answer to this.

Each of the options has its pros and cons.

Some options need larger investments although provide customization opportunities to your desired design, which may suit larger corporations or companies wanting to commit to a minimum of 4 years.

While others offer higher monthly leasing costs, yet require little to no investment and offer Flexi leasing terms, perfect for start-ups or companies that forecast short term growth.

When selecting a new office space, no one option fits all!

Each option is available to cater to your financial and business requirements… These are the primary factors that will determine the right office space for you.

Deciding which option is the best for you can sometimes be challenging.

We are here to help give you the confidence to make the right choice.

If you're planning on an office move to DIFC, we would be happy to provide proposals on each of the categories so that you can make the best-informed decision for you and your business.

 

Nemo Stojanovic
Head of Leasing,
Central Park Towers DIFC
nemo.stojanovic@centralparktowers.ae
Phone : 043738933

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