Corporate real estate has been in crisis since the pandemic began. The struggle remains rooted in his one issue: the question of occupancy. For most companies, the number of people using office space will determine whether the property was a good investment. A building must be fully occupied to provide sufficient value to your business. But nearly four years later, office usage has plateaued to about half its pre-pandemic levels. This affects not only businesses, but also businesses that thrive on daytime workforces, municipal tax revenues, and building valuations that impact investments and retirement planning.
That's a wake-up call. Despite what many expected, this problem will not resolve itself. It must be resolved.
As expected, many CEOs believed they had a solution. And as expected, it didn't work. Most CEOs have no experience with workplace strategy. Before March 2020, this topic was rarely discussed. Now, they regularly speak out, give interviews, and publish opinion columns, but they rarely make a convincing case for their point of view. The reason is often summed up in the phrase “we're better together,” which is similar to a parent's “because I said so.”
These CEOs don't have an answer to this dilemma. If you don't believe me, just look at their many failed attempts to get more people back into the office. Countless return-to-office orders have come and gone, sometimes accompanied by worker revolts on social media. And a recent survey found that many of these leaders expect their employees to eventually work five days a week, highlighting a disconnect with broader employee sentiment. .
My advice to corporate leaders is to let those with the right knowledge lead the way. Forced attendance will not improve company performance. Carelessly applied attendance requirements reduce morale, cause attrition, and limit the available talent pool. In fact, new data confirms that workforce policies impact not only employee engagement but also the bottom line.
To create a successful real estate portfolio, you need to get three things right: people, buildings, and technology.
Team leaders understand and influence employees. The post-pandemic truth is out. Team leaders often have more influence over employees than executives. Additionally, your team's goals are more focused, making it easier to articulate the value proposition of meeting in person. These managers therefore have significant influence over where people choose to work or which projects are best accomplished in person.
Additionally, interaction at the team level provides a compelling reason to meet. Most employees care little about internal orders, but are often very concerned about building trust with co-workers, which is best done face-to-face. If your team meets in person, you want to be there. Those who manage teams can build customized programs based on job functions and employee preferences. They will find a balance between freedom and responsibility so that people can thrive.
Let your real estate team develop your real estate strategy. The pandemic has upended the fundamentals of portfolio planning. Many companies need new strategies for determining where to locate offices, the square footage needed, and the desired mix of communal and private spaces. This paradigm shift requires significant change. But many leaders are resisting, based on the theory that office use will eventually return to “normal.” Their passive attitude leads to low attendance rates.
Corporate real estate professionals are passionate about understanding the purpose of a space. Ideal for planning and implementing transformed portfolios. They explore trade-offs in the most important issues in office use, including headquarters-centric versus hub-and-spoke portfolios, space-as-a-service versus leased or owned real estate, adaptive offices, intelligent workplaces, desk sharing, and sensor data. recognizing. , mobile power, etc. These are the building blocks of a real estate strategy to revive occupancy.
Make workplace technology your best option. Inferior technology will keep people away from the office. Before the pandemic, most employers had captive audiences. However, in a hybrid work environment, employees are constantly comparing digital capabilities. They work from home, Starbucks, flex space, etc. Unreliable or poor service will change their habits.
To attract more employees into the office, employers need to ensure that their IT organizations provide a better experience than what employees enjoy remotely. Everyone in the office needs to feel empowered by cutting-edge technology that not only provides robust connectivity, but also an efficient way to leverage assets that are only available on-site.
Most employees want an office that is sociable and supportive. The experience can be recreated, but the solutions will have to come from people with the right insight. Corporate leaders must recognize their limitations and leverage the talents and skills of the most qualified people to restore lost workplace vitality. Your office will once again be buzzing with happy, productive employees. And corporate real estate will also be saved.
