
The workplace has undergone a seismic shift over the past few years, with hybrid work models redefining how businesses operate and utilise office spaces.
In South Africa, where cities like Cape Town and Johannesburg serve as significant business hubs, this transformation is re-shaping office demand and design as companies in increasing numbers shift away from long, expensive and impractical leases to shorter flexible agreements with workspace and coworking providers. As we embrace this new normal, companies and property owners must adapt to meet the changing needs of a workforce that seeks flexibility and functionality.
What Is a Hybrid Work Model?
In a hybrid working model, employees have the flexibility to work from multiple locations, including a local office, their HQ and home, offering employees a balance. This approach provides increased flexibility and reduced commuting time while still maintaining a connection to the physical workplace for collaboration and team building. Countless research studies have shown that most workers are unable to work exclusively from home and instead enjoy the improved work-life balance by regularly working in a workspace close to home with a professional setup without distractions.
“In South Africa, where commuting times in urban centres can be long, and infrastructure challenges like load-shedding persist, hybrid work offers a practical solution. It allows employees to enjoy the benefits of remote work while still fostering team cohesion through time spent collaborating with colleagues in person”, says Joanne Bushell, MD, IWG, South Africa
The Impact of Hybrid Work on Office Demand
1. Reduced Demand for Traditional Office Space
Hybrid work models have led many businesses to reevaluate their office space needs. More businesses will re-size their traditional real estate footprint as longer-term leases expire, ensuring hybrid working becomes a strategic business choice, minimising overheads while providing a range of benefits to workers. Companies are opting for smaller, more flexible spaces that align with their needs
2. Growth in Flexible and Serviced Office Spaces
Flexible office solutions, including coworking spaces and serviced offices, have seen a surge in demand. These spaces allow businesses to scale up or down as needed, providing cost-effective options for hybrid teams. Major South African cities like Cape Town and Johannesburg are home to a growing number of such facilities, catering to startups, freelancers, and established companies alike.
3. Suburban Office Demand Is Rising
Workspaces continue to proliferate in smaller towns and cities as hybrid work enables people to live and work outside of major hubs. This trend has the potential to revitalise smaller cities and suburbs, and the stats show significant movement to these areas.
As employees spend more time working remotely, the need for offices closer to residential areas has increased. Suburban office parks in areas like Bryanston (Johannesburg) and Century City (Cape Town) are gaining popularity, offering shorter commutes and modern amenities.
While the spread of hybrid is excellent news for businesses and employers alike, it’s also presenting an ever-expanding market for building owners and landlords. Notably, the trend towards smaller locations means you no longer need to own property in major cities to capitalise on the hybrid work market.How Hybrid Work Is Redefining Office Design
1. Collaboration-Centric Spaces
The purpose of office spaces has shifted from individual workstations to areas that encourage collaboration and creativity. Open-plan designs, brainstorming zones, and breakout areas are now staples of hybrid-friendly offices.
2. Technology Integration
Hybrid work requires seamless communication between in-office and remote employees. To facilitate hybrid meetings and maintain productivity, offices are being equipped with advanced technology, such as video conferencing systems, smart whiteboards, and high-speed internet.
3. Flexible Layouts
Hybrid offices prioritise adaptability. Modular furniture, movable walls, and multipurpose spaces allow companies to reconfigure their layouts based on evolving needs.
4. Focus on Employee Wellness
Employee well-being has become a top priority. Hybrid offices incorporate wellness features like ergonomic furniture, natural lighting, indoor plants, and relaxation areas to create a comfortable and healthy work environment.
5. Sustainable Design
Sustainability is another critical consideration. Many companies are opting for green building designs with energy-efficient lighting, solar panels, and eco-friendly materials, aligning with South Africa’s broader sustainability goals.
Office Trends in the Hybrid Work Era
1. Flexibility
2. Increased Demand for Plug-and-Play Spaces
Businesses want ready-to-use office spaces with minimal setup requirements. Fully furnished offices with internet connectivity and essential amenities are in high demand
As one of the world’s largest operators of flexible workspaces, IWG points to its 3,500 locations across 120 countries as a means for these ‘on the move’ workers to plug in and work anywhere.
3. Focus on Amenities
To entice businesses back to physical offices, landlords are enhancing amenities. Features like on-site gyms, cafeterias, wellness centers, and secure parking are becoming deciding factors for tenants.
- Location and Accessibility are key
Today’s workers want flexibility. Rather than being tied to one office, they want the option to work from multiple locations, including workspaces close to their homes. This helps to minimise time spent commuting and improve their work-life balance.
Transport hubs like the Gautrain in Johannesburg or MyCiTi in Cape Town remain highly desirable if offices are based in central business districts (CBDs)Benefits of Hybrid Work for South African Businesses (according to studies done by IWG, the global leader in flexible workspaces and the Hybrid shift):
People
• 77% of employees say a place to work closer to home is a must-have for their next job move
• Almost half say they would quit their job if asked to return to the office 5 days a week
• Only 1 in 5 are now willing to commute for more than 30 minutes
• Workers are four times more likely to choose an office close to home than a city centre
Profit
• Companies can save significantly per employee who works in the hybrid model
• Standard Chartered found that three-quarters of their employees wanted to spend more than half the time from home. Employees are now more engaged, productive and profitable.
• According to Gartner, 80% of companies plan to allow employees to work remotely at least
part of the time.
Planet
• Cutting down on the commute is the single biggest thing companies can do to reduce their
carbon footprint
• In South Africa, commuting is the biggest single source of carbon emissions. Experts have shown the journeys made by car are equivalent to a carbon footprint of 3.2 tonnes of CO2 per person per year
The Future of Office Spaces in South Africa
The hybrid work revolution is here to stay, and its impact on office spaces will continue to evolve. Here’s what the future may hold:
- Increased Demand for Smart Offices: Technology will play a central role in making offices more efficient and hybrid-friendly.
- Rise of Satellite Offices: Companies may establish smaller offices in multiple locations to reduce commute times for employees.
- Community Building: Offices will serve as hubs for fostering company culture and collaboration, emphasising human connections.
“Employees are happier, healthier and more productive when they split their time between working close to home and company headquarters. That’s good for employees and employers alike, and real estate owners who can facilitate it have much to gain”, adds Bushell
Hybrid work models are re-shaping the commercial real estate landscape in South Africa. From changing office demands to innovative designs and flexible leasing trends, businesses and property owners must adapt to thrive in this new era.
With 4000+ workspaces in 120+ countries around the world, IWG gives businesses and partners the benefit of a global presence, plus industry expertise and customer understanding. Find out how your business can benefit from hybrid work. Or, if you’re a building owner or franchise investor looking to maximise real estate, learn how you can partner with us to develop a location.