The impact of COVID-19 on office space utilization and real-estate: a case study about teleworking in Israel as new normal

Abstract

Purpose This study aims to investigate whether the shift to teleworking during COVID-19 pandemic is going to diminish the need to procure/rent extensive office space and how this emerging trend impacts the real-estate market in Israel. Design/methodology/approach The methodologies used in this study include triangulation of Google search engine, survey and post hoc case study analysis. Findings The analysis indicates a decline both in procuring office space and its price per square meter. Employee productivity while teleworking remains relatively high despite home distractions. Interestingly, the survey results forecast a continuous shift to hybrid work mode after the pandemic. Practical implications The study introduces the development of numerous innovative Israeli technologies to allow a gradual return to work in public places. Social implications As the coronavirus outburst, business sectors were forced by government regulations to change the way of employment extensively, specifically, teleworking has become an integral part of the routine to accommodate social distance. The study provides insights into the impact of teleworking on gender and ethnic diversity in the Israeli workplace. Originality/value Israel provides a unique bedrock for investigation because of its status as a start-up nation with both high skilled workforce and advanced information technology infrastructure. The study enlightens an Israeli perspective on how a small size country with a high-density population succeeds to deal with coronavirus by teleworking coupled with strict government enforcement of social distance.

Future Teleworking Inclinations Post-COVID-19: Examining the Role of Teleworking Conditions and Perceived Productivity

“…This was especially true for workers that experienced higher levels of job demand and that had greater work privacy fit in their home office. As job demand was the strongest predictor of FTI, teleworking may afford greater resources to cope with job demand, for example, due to the time gained by not commuting and/or having fewer distractions at home ( Baert et al, 2020 ; Naor et al, 2021 ). Work privacy fit also predicted FTI; a relationship that was mediated by productivity perceptions.…”

“…Pre-pandemic, large-scale industry surveys ( Global Workplace Analytics, 2015 ; Chartered Institute of Personnel Development [CIPD], 2020 ), and real estate research ( Harris, 2016 ) indicated workers’ preference to telework more frequently. Research during the pandemic ( Marzban et al, 2021 ; Naor et al, 2021 ; Tagliaro and Migliore, 2021 ) suggests that many would favour continued teleworking post-pandemic. However, this research predominantly focused on desires to change teleworking frequency rather than exploring underlying motivations for such desires.…”

“…Pre-pandemic teleworking research echoes these advantages of teleworking, in that workers can experience improved productivity in the home office, attributed to fewer interruptions, longer working days, and work schedule flexibility ( Gajendran and Harrison, 2007 ). There are mixed results regarding home working productivity during the pandemic, compared to working in the office (e.g., Marzban et al, 2021 ; Naor et al, 2021 ; Pfnür et al, 2021 ). However, most of these studies are descriptive, non-correlational studies, which fail to differentiate contextual factors associated with productivity gains or reductions.…”

Flexible workspaces within corporate real estate

“…Anticipating the future of flexible workspaces within corporate real estate is challenging. However, one of the main consequences of the COVID-19 pandemic has been the overall success of working from home (Workplace Evolutionaries, 2020;Leesman, 2021;Marzban et al, 2021;Naor et al, 2021;Tagliaro and Migliore, 2021), which has led companies to rethink the amount of office space they occupy and the purpose of it (Marzban et al, 2021;Naor et al, 2021;Tagliaro and Migliore, 2021). From the literature search, only four studies were focused on the impact of COVID-19 in the workspace.…”

“…▪ Hybrid working: in this type of flexible working, employees can choose the number of days to work in the office and elsewhere (e.g., home or third places) (Marzban et al, 2021;Naor et al, 2021;Tagliaro and Migliore, 2021), which arguably improves their work-life balance (Pataki-Bitt and Kapusy, 2021)…”