71% of the millennials don’t need physical offices.

71% of the millennials don’t need physical offices.
18 June 2020
  • As Generation Z steps into business life, the way they work and their spatial needs are being reshaped.
  • Research shows that 71% of the millennials will not need a physical office in 2030.
  • Prioritizing freedom, the new generation gives green light to space-independent working.
  • There are many scenarios on the agenda from boutique offices to hybrid working models.

*** This release is originally published in Turkish.
Google Translate Application translates the content you see on this page.***

ISTANBUL (TR) - The rapidly increasing digitalization with new generation technologies put professional business life into a dynamic transformation process. While young members of the technology age are getting more and more involved in business life, efficiency-oriented working models come to the fore. While the millennium generation states that they prefer remote or hybrid working model, which is frequently heard and experienced by many employees during the COVID-19 pandemic process, Harvard Business School's research conducted in companies such as NASA and Akamai shows that distance working is 4.4% more efficient.

According to the data compiled by Unusual Office, spatial needs are changing in parallel with the business dynamics of the young generation. 71% of the millennials believes that the need for physical offices should disappear in 2030. It is seen that 63% of the people currently working in the office agree with the millennium generation.

A generation who wants to work in Balat instead of Maslak

Stating that most of the senior millennials have reached the age of 25, Unusual Office Founder A.Seçkin Canan said, “Today, the millennium generation, which differs from previous generations with its result-oriented perspective, prefers plain and functional workspaces. We predict that the trend towards boutique offices that offer virtual office and ready-made office services with the hybrid working model will increase and boutique offices will replace the plazas in the near future. This generation is inspired and happy to work in districts such as Balat, Fener and Karaköy instead of offices in Levent and Maslak.”

Virtual and ready offices save $ 5 billion in the USA

According to the research conducted by PGI regarding physical office rental costs in the USA, the cost of physical offices to employers starts at $ 10,000 per month. However, it seems that working in remote, part-time and virtual offices saved US $ 5 billion in 2018. In Turkey, a similar situation is observed in the plaza rented as offices, especially in big cities like Istanbul. Despite the high amounts paid, the employers of the young generation, who do not meet their expectations in terms of efficiency, transportation and routine office responsibilities, prefer ready and virtual offices instead of plazas.

They help the entrepreneurial generation

Boutique offices that offer virtual office services can be shown as official addresses for those who will start new businesses or move their offices to a different address. The new office type in question is running to help as an important solution for the new generation of entrepreneurial spirit. With this solution, routine office responsibilities such as infrastructure investment, security, cleaning, kitchen, secretariat, monthly invoice, call and cargo management are also transferred to virtual offices. Meeting and working areas can also be used if needed. According to the calculation published by Unusual Office, the total monthly cost of a 15-person office in business centers such as Maslak, including rent and administrative expenses, starts at approximately 2,500 TL per person, and this amount goes down to 600 TL, all inclusive, in ready-made offices in more central areas of the city. Prices start from 100 TL, especially in virtual offices that are preferred for company installation.

Corporate companies are choosing ready office memberships for their employees

The remote working model, experienced for the first time by many employees during the pandemic process, is evolving into a hybrid working model with the transition to the new normal process.Stating that the hybrid working model, where physical offices are used in necessary situations such as routine meetings, Unusual Office Manager Ahmet Ayan said, “The era of the company's employees under one roof is over. This model of work, which the millennium generation finds useful in terms of efficiency and motivation, is expected to be permanent in the near future, although it is currently implemented within the scope of social distance rules. The younger generation of employees are also turning to ready-made offices in order to open space to the business model of the future. Corporate companies, on the other hand, prefer to receive annual collective memberships from ready-made offices by offering remote work for the next generation of workforce who want to produce without being connected to a single location.”

Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55