TRENDS TO WATCH

Signs of Stress are flashing everywhere in the market. So are opportunities, for those who watch the market with eyes wide open. Here's what Griffes’ team receptors saying about the future and mostly, about the present:

• IT DEMAND WILL BE PLUMMETING in 2023 in Romania, due to the severe impact of the automatization and work from anywhere concepts. In 2021, IT made 35% from the total office new leases, while in 2022 it already dropped to 27%, reaching 49,500 sqm. A number of factors are driving this, starting with the still reasonably high productivity in work from home, massive layoffs announced already in January 2023 by big tech companies, and extensive efforts to reduce costs - all these are steering a reduction of the office footprint.

• The return of the SHARED SERVICE CENTRES and the revival of OUTSOURCING ACTIVITIES - as we are bracing for the impact of the new downturn, you also feel the thick air of the cost cutting climate. At a broader scale, we see the densification of near shoring and off-shoring as part of sourcing cheaper (and available) labour. That will also entail more office space, maybe not the classical 10 m for each employee, but surely some quality space where they can be competitive - this truly is a cost driven, fiercely competitive sector - and still create an experience for the employees.

• ANTI-OFFICE attitude WILL PALE / FADE AWAY. Work from home and work from anywhere will become again a privilege, not an entitlement. Why so? We know this is a bold statement, but more than 75% of the tenants Griffes works with are mandating return to office. Teams lack cohesion, co-workers are unable to follow a joint task, quite quitting has reached catastrophic levels, so astute leadership is already taking measures to gather people back in office, minimum 3 days per week.