Semigration: Driving a hybrid way of working
Category Commercial Property News
Semigration is a growing global trend that has seen individuals and families move locally in a search for a more balanced lifestyle. The global pandemic in the past year has increased the popularity of this trend, we'll be investigating how this has affected the South African commercial real-estate industry.
In search of a more balanced lifestyle, and made possible by the emergence and acceptance within the corporate space of a Work-From-Home (WFH) or a hybrid working model, Experts have noted a marked increase in the number of people buying properties and relocating to regional centres and more remote areas within the country. But, what does this mean for the corporate property environment?
The United States Postal Services conducted a survey in the US to understand how the pandemic impacted people's lives and if it encouraged a trend of people moving out of the inner cities; and if so, why. The results revealed a significant increase in movers during the first six months of the pandemic with:
- 28 percent saying they moved because they feared getting Covid-19 if they stayed where they were living;
- 20 percent said they wanted to be with their family;
- 23 percent moved because their college campus closed and;
- A total of 18% gave financial reasons, including job loss
'Semigration' in South Africa
In South Africa, most out-of-city moves are 'semigration' related, i.e. people choosing to move to a different location within the country. The provinces high in demand are those that are mostly considered as lifestyle, or holiday as well as retirement destinations, specifically the coastal provinces of the Western Cape and KwaZulu-Natal. Additionally, peripheral and suburban areas in metros and secondary cities and towns have seen a resurgence of interest, and this time for permanent occupation.
The pandemic has pushed the fast-forward button: it is no longer only the wealthy or retired considering outlying and remote areas as primary residences. An enhanced focus on lifestyle, surroundings, quality of life and issues such as personal safety, are seeing people of all ages, married, single and families considering 'semigration'.
Parts of the Western Cape, Garden Route and the North Coast of KwaZulu-Natal are particularly appealing to South Africans from the inland areas. Coastal towns like Ballito, George, Hermanus, Gansbaai, Betty's Bay and Kleinmond on the coast are becoming sought after, while inland towns of the Western Cape and Karoo, such as Paarl, Malmesbury, Greyton, Riebeek Kasteel and Prince Albert, are also popular.
The new world of work-from-home
The advancement of technology and infrastructure improvement, making access to the internet possible from most parts of the country, means that WFH is now possible from virtually anywhere in South Africa.
This trend has meant that businesses of all sizes have had to relook their operating models, analysing the expectations of their workforce. Many businesses have seen improved productivity due to the greater flexibility afforded to employees, and most businesses are now considering WFH or a hybrid model as a longer-term business reality.
The impact on corporate property
While the global pandemic has fast-tracked the WFH and hybrid working ideology, it has also placed a spotlight on the fact that humans are social beings who need interaction to remain productive and positive.
As a means of embracing a hybrid working model, 'semigration' has opened opportunities for businesses to reduce their rental overheads, by moving their offices outside of main metropolitan areas, which generally have higher rentals. Bizcommunity reported last month that "The demand for suburban offices is on the rise as businesses look to decentralise and diversify their existing workplaces. [...] Covid-19 has seriously disrupted the office market and has expedited this migration".
Owners, tenants, small businesses, entrepreneurs and freelancers have been pressed to seek out alternative solutions to meet their new works demands and pockets. It is therefore, not surprising that business leaders in South Africa are relooking office space use, including location of their offices.
What does the future look like for corporate real estate in SA?
Considering the above, the demand for flexible office spaces is on the rise. Before the pandemic, flexible- and shared working spaces was an emerging trend which is now proving to be a viable solution for both employers and employees in the midst of the pandemic.
The 'hub and spoke' model, with a higher quantity of smaller offices in suburban locations, is proving to be feasible from a financial perspective for employers as well as employees.
Suburban serviced offices and flexible spaces afford businesses financial flexibility without being tied to a rigid fixed lease, agility in changing the workspace set-up in line to current needs, which is better for the bottom line. For employees, it removes the hassle of commuting through traffic, improves accessibility and means access to more affordable residential property, outside of metropolitan areas.
With agile business models, adaptive workspaces, flexible work environments and cost sensitivity being top of mind for business owners and their employees, 'semigration' will be an ongoing feature in the South African property landscape, both commercial, corporate and residential, for the foreseeable future
"While the future could see more companies opting for a smaller head office in a central location, alongside a clutch of well-placed satellite hubs, the need for smart, modern office spaces with cutting edge facilities is essential to business success," reports Bizcommunity.
The commercial property market needs to focus on agility and flexibility, keeping the modern workforce at the centre of its evolution. OfficePlace has a variety of options available for flexible workplaces and serviced offices; browse them here, or get in touch with one of our knowledgeable brokers.
Author: OfficePlace