The World of work is changing. Clients in every industry are now facing the challenges and opportunities presented by this disruption, with much thought going into how work will be completed and by whom in the years to come.
The real estate industry is no different, with a significant impact on the physical workplace anticipated that occupiers, developers, and investors will need to carefully consider. Drawing on major disruptors- ranging from automation and replacement of jobs to diversity and generational change-four key trends the industry will need to respond to.
Location Strategy is Key
Location strategies have never been more important, whether driven by the need to access skilled talent pools, improve financial performance by moving to lower-cost locations, or the need to respond to geo-political events. In the past, these were often developed in a reactive and hoc manner.
In the future, occupiers need to keep these under constant review to ensure the footprints are optimized and future requirements are anticipated, planned for, and executed at pace.
For developers and investors, it is essential they understand the emerging location hotspots and deliver the real estate required to them. This may create additional risks if it involves investing in markets that are still emerging but offers the opportunity to capture demand as it grows.
The Way People Use Space Will Change
In the past, remote working was promoted to reduce costs. Today, it is the staff who are demanding agile working. Both trends drive down the amount of traditional office space required. But as traditional office space decreases, non- traditional space-space that supports teaming, collaboration, and co-working – will increase significantly.
Occupiers need to develop a greater understanding of how they actually use the space. Sensors and other building technologies can help provide insight as to how different types of space are used, which in turn allows buildings to be operated at higher levels of utilization. In addition, occupiers need to adopt fit-out and furniture
solutions that can evolve in a cost-effective manner. This will require moving away from traditional, often rigid, corporate standards. For developers and investors, the challenge is to deliver buildings that have the flexibility in the base build to accommodate a wider range of configurations and anticipate the demand for intelligent building data and analytics.
Flexible Office Space will become part of the strategic solution
Serviced office space has long had a place in the corporate portfolio, where it has often been used as a tactical solution to accommodate project or overspill space. However, as the flexible office market has become more sophisticated, occupiers are now looking to use this space strategically such as accommodating high-growth digital businesses.
As organizations become more dynamic and the future becomes more uncertain, it is likely that flexible space will play an ever greater role within the corporate portfolio. The challenge for occupiers is to justify the additional flexibility and increased amenities offered by the space against the cost premium over
traditional long-term space. For landlords and investors, it poses a question as to how to capture the premium that occupiers are willing to pay, with many considering a move to shorter flexible lease terms and/or developing their own flexible office brands.
For Developers And Investors, The Future Of Work Means Buildings Where The Talent Of Tomorrow Will Be Based. The Building Of The Future Needs To Be Designed Around What The Occupier Will Value And It Must Be Flexible And Fully Enabled For The Technology That Is Needed To Manage The Work Place Of The Future.
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