Although offices remain a vital component of workspaces, they are undergoing a structural shift as companies worldwide strive to adapt their physical spaces to new ways of working and reassess their corporate real estate decisions.
This decision-making process can be simplified into four key considerations: community, culture, costs, and carbon. These considerations allow for the analysis of changing demands and needs in spaces and real estate strategies, which now have to align and integrate with financial, technological, and human resources objectives, both in the short and long term.
COMMUNITY
Socially responsible supply chains / Creating spaces and connections / Inclusion
- Many workers advance in their careers due to their commitment to both internal and external communities.
- Building ties with the local community — whether it's the community surrounding the workplace, other tenants in the building, or local initiatives and causes— enhances loyalty, satisfaction, and ultimately talent retention.
- Other connections can be established through charitable partnerships and the development of ethical and social hiring initiatives.
- These actions improve brand reputation, address social needs, and provide a unique selling point for potential clients and employees.
COSTS
Location / Market cycle / Space needs / Lease structure
- Economic growth has slowed, and companies are scrutinizing all expenses, especially those related to their real estate footprint.
- Looking ahead, higher-quality buildings in prime locations are expected to experience higher demand and quicker recovery.
- For occupying companies, this presents an advantage.
CARBON
Net Zero commitments / Green design / Brand promise
- Environmental, Social, and Governance (ESG) goals are essential for a company's long-term financial performance and corporate reputation.
- Various tools and rating systems, such as LEED, WELL, Fitwel, and Reset, are available to design and evaluate sustainable workplaces.
- The benefits extend beyond meeting ESG targets, as they positively impact employee well-being and productivity.
- Companies should view ESG initiatives as a way to achieve multiple corporate goals, with a return on investment (ROI) that also reflects these benefits.
CULTURE
Hybrid work models / Well-being / Inclusive design / Services
- With the rise of flexible work, organizations need to make greater efforts to foster a positive corporate culture that employees feel connected to and supported by.
- When flexible work arrangements are widespread, mandating office attendance is not the solution. Instead, the focus should be on motivating employees to choose the office for specific experiences.
- Office design must evolve to accommodate flexible work models. A modern office should be operationally efficient and effective whether at 50% or 100% capacity.
- Designing accessible and sensory-friendly environments benefits everyone. Creating diverse, equitable, and inclusive workplaces allows individuals to feel safe and supported, manage themselves, and perform at their best.
Real estate management leaders have a great opportunity to implement evidence-based strategies to align operational investments with the goal of driving a productive, engaged, and inspired workforce.
At Cushman & Wakefield, we support our clients in designing and implementing these strategies.