95% of companies believe internet connectivity is now more important than a city centre office


More than 95% of businesses believe having a strong internet connection is more important than a city centre location.

Addleshaw Goddard and the Fraser of Allander Institute surveyed more than 500 businesses from across the Scottish economy in April, finding that only 15% favoured a city-centre location over digital connectivity, while 40% said that strong public transport links would be a determining factor.

The research showed that more than a quarter of businesses expected to permanently reduce their office footprint by two thirds, with respondents stating that home-working has had an impact on workplace innovation and culture.

Nearly half believed that remote work had an impact on productivity, leading to 42% of organisations to have invested in new technology last year to aid this.

The same proportion of businesses said that flexible and collaborative space will be key to their new physical place of work.

Nearly three quarters of those surveyed said the cost of space would determine future location decisions, as businesses look to strengthen their balance sheets or build capital reserves as the economy recovers.

The majority of firms also expect to operate between 76% to 100% of normal capacity over the next six months.

Confidence also appears to be returning, with a quarter of businesses expecting strong or very strong growth in the coming 12 months, compared to only 8% who felt the same in the previous quarter.

At the end of last month, Addleshaw Goddard and the Fraser of Allander Institute released the findings of a business confidence survey, revealing that almost 90% of businesses were confident that their chance of survival over the next six months is somewhat or very likely.

Alison Newton, partner and co-head of real estate at Addleshaw Goddard, said: “Organisations, while experiencing some real challenges, also have the opportunity to reflect not just on their day-to-day working practices, but also the space they want to occupy so that productivity, staff health and wellbeing, and sustainability, are built into their businesses.

“There is a real balance to be struck in terms of engaging with staff to understand how and where they want to work, and the commercial or operational needs of the organisation.

“There are a number of landlords starting to work with new tenants to help provide a platform for that balance.”

Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *