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The concept of office space has undergone significant changes over the past few years. It has evolved from the ‘cubical’ set-up in the nineties to ‘open plan’ desk space in the twenties and to ‘flexible’ and ‘co-working’ spaces today.
This evolution has been driven by both changing business requirements as well as evolving employee needs.
Office space plays a crucial role in recruitment, retention, productivity and the ability of a firm to meet its business objectives. Increasingly, companies are looking at real estate as a service differentiator to attract and retain the best talent in the industry and as an avenue to reduce their operating costs. Employees prefer more autonomy on how / where they work, favouring a more relaxed and informal corporate surrounding. Sustainability and environmental impact of an office space is also a key consideration. This trend has also been driven by millennials, who now constitute a large share of the workforce globally. Companies are responding to this shift in demographics and are turning to human-centric designs to create an engaging work environment. Efficient modern workplace settings now offer a balance between human interactions along with the ability to work without distractions.
While the internal office space has undergone a rapid evolution, the concept of office buildings has remained largely unchanged. CBD’s across most major cities are characterised by tall standalone buildings with limited or no interaction with the surrounding environment and no real social zones. A lack of community offering is a key theme across most global business districts as rapid urbanisation and increasing population density has restricted the overall offering.
Saudi Arabia is currently undergoing economic diversification which will result in rapid urbanisation and economic growth. Policy changes which are currently underway have prompted demand for investment grade real estate. The office segment is at the forefront of this growth with large scale projects either planned or under construction across the country. With close to 40% of the country’s population between the age group of 20 – 40 years, it is imperative to incorporate their requirements while building projects. There is a clear opportunity to learn from international best practises and customise as per local needs. This paper aims to shed light on the growing demand for office space in the country’s capital and the introduction of Business Parks as an instrument to meet business needs while attracting / retaining talent. It also aims to shed light on entry of new business sectors, completion of key infrastructure projects and its impact on the office real estate landscape in the city, going forward.
Click here to read the Arabic report