Old Continent is currently experiencing the phenomenon of shrinking the working population. The reduction of its number triggered a negative reaction on the office space market - the demand for office space will fall. The scenario assumes that over the next 20 years there will be 10 percent decline in demand for commercial space (office and storage). The next phase will last until the 2050, and this phenomenon will cover the whole of Europe. Such a negative outlook for the office market were presented in the report developed by Colliers International, "Generation Y - Part 2".
The reduction of the population would cut the demand
In the coming years a slight drop in population is projected. According to analysts, it will affect negatively the demand for office space.
The structure of the population of working age is currently dominated by the so-called. Baby Boomers, so those who were born during the baby boom (up to 45 percent of working population). Until now, the requirements for the working environment were observed, resulting in the division of the office for separate rooms which currently is more evident than so-called open-space.However, as analysts predict, by 2020, the number of Baby Boomers will be reduced by as much as half, and 10 years later, they will no longer have a crucial impact on the planning of office space. The consequence of this phenomenon is that the position in the process of deciding on the form and appearance of office space will be strengthen by Generation Y - the generation of the 80s boom Twentieth century generation, which unlike the generation X, will tame technological innovations, and Generation Z - those born after 1996 and living in countries with a high degree of economic and market saturation technique.
The standard will be completely different behavior and consumer requirements: Within the next 20 years we expect a significant change in the prevailing style, employee motivation system and working methods, as well as how to reach the place of work - said Guy Douetil, Managing Director, Corporate Solutions division in EMEA. Having a properly adjusted and created jobs is an important factor to consider for developers and owners of office - he added.Therefore, for investors and banks financing new projects, what must be important, is that the office buildings will meet the requirements of the changing canons as long as it is possible. If you do not adapt to them, the vacancy rate will increase and market rents will fall. Costly result of failure to respond to new trends will be the need to incur additional costs to upgrade existing resources.Download PDF