2024-11-12
What For Offices? Who Needs Offices in the Modern World?
Hello, world without offices!
Have you ever wondered why you need an office? Seriously. This isn't one of those "what was first, the chicken or the egg" questions—it's far more real. I confess, for a long time, I was trapped in the idea that the office was the “place of power,” a corporate Olympus where employees gather to worship the gods of business. But the pandemic, like a universal stress test, forced many of us to reconsider and let go of unnecessary baggage.
When the world went into lockdown, we discovered that we didn’t really need to commute to an office every day, wasting hours on the road and enjoying the coffee fumes of that one coworker who believes two liters of caffeine daily is normal. And guess what? Once the initial panic subsided, it turned out many companies not only survived without offices, but thrived.
Have you ever wondered why you need an office? Seriously. This isn't one of those "what was first, the chicken or the egg" questions—it's far more real. I confess, for a long time, I was trapped in the idea that the office was the “place of power,” a corporate Olympus where employees gather to worship the gods of business. But the pandemic, like a universal stress test, forced many of us to reconsider and let go of unnecessary baggage.
When the world went into lockdown, we discovered that we didn’t really need to commute to an office every day, wasting hours on the road and enjoying the coffee fumes of that one coworker who believes two liters of caffeine daily is normal. And guess what? Once the initial panic subsided, it turned out many companies not only survived without offices, but thrived.
1
The Evolution of Business: Ditching Offices
The post-pandemic era showed us an evolutionary leap. Things we considered untouchable, like the necessity of offices, were just traditions, like wearing ties. Today, technology allows us to work from anywhere, making offices seem like expensive museum relics—costly and of questionable benefit.
[New York: Office vacancy rates in Manhattan hit 19.6%. Companies are moving to hybrid work models, significantly reducing their office needs. London: Vacancies in East London reached 16.5%, although premium spaces in prestigious areas remain in demand. Dubai: According to the "Dubai 2040 Urban Master Plan," commercial spaces will increase by 168 sq. km. However, there’s a big focus on green zones and sustainability improvements.]
Even in the world's business hubs, offices are no longer a necessity. These real-life examples highlight the changing landscape in major cities.
[New York: Office vacancy rates in Manhattan hit 19.6%. Companies are moving to hybrid work models, significantly reducing their office needs. London: Vacancies in East London reached 16.5%, although premium spaces in prestigious areas remain in demand. Dubai: According to the "Dubai 2040 Urban Master Plan," commercial spaces will increase by 168 sq. km. However, there’s a big focus on green zones and sustainability improvements.]
Even in the world's business hubs, offices are no longer a necessity. These real-life examples highlight the changing landscape in major cities.
2
Ten Companies That Ditched Offices
Let’s take a look at ten companies of different sizes and industries that said goodbye to their offices—and are doing just fine:
- Automattic (WordPress developers) – Revenue: $150M, Employees: 1,900
- GitLab – Revenue: $268M, Employees: 1,400
- Buffer – Revenue: $19M, Employees: 85
- InVision – Revenue: $100M, Employees: 700
- Zapier – Revenue: $140M, Employees: 600
- DuckDuckGo – Revenue: $100M, Employees: 175
- Toptal – Revenue: $200M, Employees: 1,000
- Doist (Todoist and Twist) – Employees: 65
- FlexJobs – Revenue: $10M, Employees: 150
- Teachable – Employees: 150
These companies not only maintained productivity but also cut costs. And if you think only small or medium-sized companies are saying goodbye to offices, consider Coinbase.
3
Coinbase's Radical Move
Coinbase, one of the largest cryptocurrency platforms globally, went "remote-first" in 2020, closing its San Francisco headquarters in 2021. Now, most of its 4,500 employees work remotely, a shift driven by the COVID-19 pandemic. This decentralized approach allows the company to attract top talent worldwide, maintain work-life balance, and keep strong financial performance. Coinbase: Closed SF HQ, became remote-first. Employees: 4,500 Key Benefit: Cost savings and global talent acquisition.
4
My Personal Story: The «Office Prison»
When I moved to Italy, I decided to try something new—I ditched the office. Before that, I believed an office was the heart of the company. But even in the most comfortable office, I felt trapped. I had a mini-gym, a kitchen, and a lounge area, yet I still wanted to escape. Ironically, I found myself holding more meetings in neutral, less formal environments.
The office phone? It's an artifact. Why call a receptionist when you can message someone directly? Paying for a number no one calls seems pointless. Now, with employees in over 10 countries, I would have wasted a fortune on office space.
The office phone? It's an artifact. Why call a receptionist when you can message someone directly? Paying for a number no one calls seems pointless. Now, with employees in over 10 countries, I would have wasted a fortune on office space.
5
Cost of Office Space in Global Cities
- Rome: €40 per m² = €4,000/month
- Nicosia: €20 per m² = €2,000/month
- Zurich: CHF 60 per m² = CHF 6,000/month
- London: £60 per m² = £6,000/month
- Bangkok: THB 600 per m² = THB 60,000/month
- Istanbul: TRY 100 per m² = TRY 10,000/month
The Future of Retail Spaces
Retail is also undergoing major shifts. The trend of reducing large storefronts began pre-pandemic. More retailers are moving online, reducing costs associated with renting and maintaining physical stores. While offline stores are still needed, their size is shrinking, and their format is becoming more mobile.
Urban Planning Policies: What Happens to Office Spaces?
Global cities are adapting to new realities, focusing more on multi-functional and sustainable urban spaces. New York: Authorities are modernizing infrastructure, with an emphasis on flexible, multi-use zones rather than new office buildings. London: Existing office spaces are being upgraded for sustainability, particularly in central districts where demand remains for high-quality offices. Dubai: The city is balancing office space expansion with green areas and sustainability under its "Dubai 2040 Urban Master Plan." Milan: Industrial and office buildings are being converted into multi-purpose complexes that include residential, commercial, and cultural spaces.
Is It Worth Investing in Office Real Estate?
If you're considering investing in office spaces, think twice. Modern trends show that office spaces are losing their appeal for tenants and investors alike. Rising vacancy rates, high maintenance costs, and shifting business needs make these investments less attractive. Instead, consider flexible and multi-purpose spaces that can adapt to new requirements and ensure long-term sustainability.
P.S.: If you’re renting an office just to escape your family, maybe take a walk or a run instead. An office isn't just a waste of money—it's an illusion of a refuge. Embrace freedom and mobility! Offices kill the spirit of freedom, creating unnecessary overhead that negatively impacts profitability. As an investment, office spaces are becoming less appealing, offering little more than the illusion of productive space. Long live the world without borders and walls!
P.S.: If you’re renting an office just to escape your family, maybe take a walk or a run instead. An office isn't just a waste of money—it's an illusion of a refuge. Embrace freedom and mobility! Offices kill the spirit of freedom, creating unnecessary overhead that negatively impacts profitability. As an investment, office spaces are becoming less appealing, offering little more than the illusion of productive space. Long live the world without borders and walls!