Lost revenue, reduced cash flow and increased expenses resulting from the impacts of the coronavirus pandemic are pushing businesses, especially small ones, to move from larger office spaces to smaller ones as the constraints financial limits their ability to pay the high cost of the rental. .
Some of the companies that have interacted with the B&FT said the pandemic has had a significant impact on their cash flow, making it difficult to maintain residence in lavish office space in the capital, given the cost. As a result, they adopted remote and shift work systems to accommodate their workers and reduce the expense of staying in business.
A graphic design business owner, who wants to be known only as Mr. Antwi, explained that before the pandemic, he worked in a five-room office; but when the pandemic hit, he had to move his business to a two-room office space and have his staff work from home to keep costs down.
“I don’t think we can afford to pay what we’ve paid for the past two years so we had to move to a smaller space and have our staff run a shift system – which has in turn helped to be more profitable and more productive. Many businesses have had to close because of the pandemic; but for a company like mine, if staying afloat means I have to work in a smaller office space, why not, ”he said.
Kojo Kesse, owner of a multimedia business at Connect Link, also told the B&FT that he plans to move to a smaller space and use a shift system or let some of his employees work from home because he cannot pay their current monthly rent.
“When the pandemic hit us and business slowed, many of us had to telecommute. It has helped us a lot because we cannot afford to pay high rents. Now we have to find ways to handle the situation; either we move to a cheaper location or we run a shift system.
“Looking for space, the cheapest we’ve come across is US $ 300 per month. I may have to keep my staff working remotely for a while until I can find something to suit the pockets of the company, ”he said.
However, for someone like Bridgette Ansah – a communications employee at Transbyte Technology Limited, she maintains that the nature of work at some companies will prevent workers from working from home; therefore, owners of office space should take into account the difficulties that businesses face and reduce rental charges so that they can remain in business.
“Most organizations are adopting the shift system to help slow the spread of the virus, and businesses are looking for smaller office space. I know of companies that used to work from huge office spaces and now have moved to smaller ones to alleviate the high cost of operating huge office spaces that are underutilized.
“But not all businesses can continue to work from home, and some still need office space to run their services. So, if the cost of rent is reduced, many people will rush for office space; which in turn will boost the real estate industry and also help many businesses, ”she said.