The Future of Offices: Adapting to a Changing Workplace

The COVID-19 pandemic reshaped the world of work in ways few could have predicted. Office attendance plummeted, traditional workplace models were upended, and demand for office real estate shrank dramatically. Adrian JG Marsh looks at a recent McKinsey report that sheds light on what’s next.

The ripple effects of COVID-19 extended far beyond office buildings, affecting commuting patterns, retail footfall in city centres, and even the long-term structure of the property supply chain. As companies reassess their workspace strategies, the future of the office is being rewritten.

The Post-Pandemic Office Landscape

The shift away from daily office attendance has been stark. Fewer people commuting means fewer passengers on trains, fewer coffee and sandwich purchases, and fewer opportunities for the development of new office spaces. The traditional office, once an essential corporate fixture, is no longer a given. Companies are now reassessing their real estate portfolios, balancing flexibility with the need to maintain culture, collaboration, and productivity.

At one end of the spectrum, some businesses are enforcing a full return. JP Morgan, for example, has pushed its 22,000 UK staff back to a five-day office week, leading to a shortage of desk space at its Canary Wharf headquarters. Meanwhile, other firms are embracing hybrid working, questioning whether large office footprints are still necessary.

McKinsey’s latest review of the real estate market examines these trends and provides a framework for understanding the office’s future role. The report suggests that the office must evolve into a purposeful, connected, digitally enhanced, and sustainable space. Only then can it remain relevant in the age of hybrid and remote working.

The Office with Purpose

The next-generation office must be a strategic tool for business success, not just a place to house employees. To remain valuable, office spaces must be:

• Located in prime areas with high-end amenities and adaptable interiors.
• Designed for a clear purpose, with companies defining when and why employees need to be in the office.
• An asset for talent attraction and retention, fostering a sense of belonging, culture, and collaboration.
• Programmed for key interactions, ensuring that hybrid teams maximise their in-office time for brainstorming, mentorship, and team building.

Companies are already shifting in this direction, opting for smaller but higher-quality office spaces while redirecting funds toward better infrastructure and employee experiences.

The Office as a Hub for Connection

One of the biggest drawbacks of remote work is the loss of social capital—those spontaneous interactions that fuel innovation, mentorship, and knowledge sharing. Future offices must prioritise connection-building by:

• Encouraging informal gatherings and knowledge-sharing sessions.
• Creating flexible spaces designed for collaboration, workshops, and learning.
• Using data-driven insights to refine layouts that optimise workplace experience.
• Integrating well-being-focused designs, ensuring offices support employees’ mental and physical health.

With many employees still reluctant to return full-time, the office must earn its place by fostering a sense of community and purpose that cannot be replicated remotely.

The Digitally Enhanced Office

Technology will play a key role in making the office more efficient, comfortable, and responsive to change. Smart office spaces will:

• Use AI-driven analytics to optimise layouts, lighting, and foot traffic flow.
• Incorporate modular designs that adapt to evolving work styles.
• Provide integrated hardware, software, and services to enhance the office experience.
• Offer data insights into space utilisation and energy efficiency, enabling smarter operational decisions.

The use of generative AI and sensor-based technology will transform workplaces, helping them compete with the convenience of working from home.

The Sustainable Office

Sustainability is now a business imperative. Future office spaces must align with net-zero goals and prioritise the well-being of occupants. This means:

• Decarbonising operations through smart energy management and sustainable construction.
• Collecting real-time data on energy use and emissions to support ESG (Environmental, Social, and Governance) goals.
• Integrating natural light, greenery, filtered air, and outdoor spaces to boost productivity and well-being.

Companies that fail to integrate sustainability into their real estate strategies will struggle to meet increasingly stringent regulations and tenant expectations.

Implications for the Property Supply Chain

These evolving office demands have major consequences for the property supply chain. Developers, landlords, and service providers must rethink their approach to delivering office spaces that align with new workplace realities.

Aditya Sanghvi, Senior Partner at McKinsey New York, sums it up: “I haven’t given up hope for the office, but I do think landlords have to create a different relationship with tenants and provide services that actually help those tenants achieve better outcomes. To beat the working-from-home alternative, spaces should ‘earn the commute’ by being places where people want to work, not just places where they have to work.”

For landlords and developers, this means investing in flexibility, technology, and sustainability to remain competitive. Office design must become more tenant-centric, focusing on value-added services rather than just square footage. Meanwhile, the construction supply chain must adapt to deliver smarter, greener, and more adaptable spaces that meet the expectations of the modern workforce.

The Road Ahead

The office is not dead, but its role is changing. The post-pandemic workplace must serve a clear purpose, foster meaningful connections, integrate smart technologies, and prioritise sustainability. Companies that embrace these shifts will find success in attracting top talent, maintaining strong workplace culture, and making the office a destination worth commuting to.

For landlords, developers, and the broader real estate sector, the challenge lies in delivering office spaces that meet these new demands. Those who adapt will thrive; those who resist change risk obsolescence.

The future of the office is not just about buildings—it’s about people. And the companies that prioritise people-first workplaces will shape the next era of work.