The impact of COVID-19 on office space utilization and real-estate: a case study about teleworking in Israel as new normal

Abstract

Purpose

This study aims to investigate whether the shift to teleworking during COVID-19 pandemic is going to diminish the need to procure/rent extensive office space and how this emerging trend impacts the real-estate market in Israel.

Design/methodology/approach

The methodologies used in this study include triangulation of Google search engine, survey and post hoc case study analysis.

Findings

The analysis indicates a decline both in procuring office space and its price per square meter. Employee productivity while teleworking remains relatively high despite home distractions. Interestingly, the survey results forecast a continuous shift to hybrid work mode after the pandemic.

Practical implications

The study introduces the development of numerous innovative Israeli technologies to allow a gradual return to work in public places.

Social implications

As the coronavirus outburst, business sectors were forced by government regulations to change the way of employment extensively, specifically, teleworking has become an integral part of the routine to accommodate social distance. The study provides insights into the impact of teleworking on gender and ethnic diversity in the Israeli workplace.

Originality/value

Israel provides a unique bedrock for investigation because of its status as a start-up nation with both high skilled workforce and advanced information technology infrastructure. The study enlightens an Israeli perspective on how a small size country with a high-density population succeeds to deal with coronavirus by teleworking coupled with strict government enforcement of social distance.

Citation

Naor, M., Pinto, G.D., Hakakian, A.I. and Jacobs, A. (2022), "The impact of COVID-19 on office space utilization and real-estate: a case study about teleworking in Israel as new normal", Journal of Facilities Management, Vol. 20 No. 1, pp. 32-58. https://doi.org/10.1108/JFM-12-2020-0096