If you are a commercial real estate owner or manager, you must familiarize yourself with the rising trends in workspaces. Office spaces leasing businesses were one of the worst hit during the pandemic when the world started working from home. But every industry shifted and adapted in its own ways in response to the pandemic, and commercial real estate was no different.
But there is a high chance that real estate will see some permanent changes in the coming years. Many trends are already changing, like the idea of office space is completely changing due to the advent of remote work. FlexJob’s 10th Annual survey found that 97% of employees are looking for complete remote work in the coming years. Employers and companies are taking this seriously and reimagining how they describe office space. Even big giant employees like LinkedIn and Twitter are also offering permanent remote work options to their employees.
While some people did predict that traditional office work and workspace will make a comeback, the reality looks a little different at present. To know all about the change of workspace post-pandemic and how real estate can adapt to it, read this blog.
What will office spaces look like for CRE owners?
For owners and investors in office spaces, the two years of the pandemic were a downward slope. But the tough times have also brought some new market trends. Here is what office spaces are starting to look like, and more adaptation is likely to happen on it with time. Check them out.
Hybrid offices will stay for long
A CNBC news report on a Mercer HR study found that more than 70% of employers and companies plan to make hybrid work a permanent model. Why this move? EY survey reports say that more than 50% of employees will quit their jobs if they are not allowed work flexibility after the pandemic. Companies have got to take this seriously and rethink their own strategy and leadership to change their office space and culture.
Since this trend is rising, CRE owners need to be aware of this trend. What does it look like? All employees will not be present in the office at all times, and this means that many companies will look for smaller office spaces. They will save money on rent and make smaller investments. CRE owners can easily split up their big spaces, divide them up, and rent them out as smaller individual offices in line with this trend.
Open floor plans will decrease, but open office space will increase
Co-working culture and spaces will likely suffer a lot after the pandemic. Why so? Most companies will consider their employees' safety and ensure they have their own enclosed spaces to work in, without external contact. This will mean that open floor plans without boundaries and space division, such as in coworking spaces, will decrease.
But there is an opportunity in this too. The demand type will change, and companies will likely demand more open spaces in their own offices to promote employee well-being. Office real estate owners need to take notice of this trend and revamp their offices accordingly.
Lease options will be more flexible
The need for office space can not completely disappear, and after two years of the pandemic, though many people are working from home, many are also going back to the office. The main idea is to have more hybrid work than before. This will also promote a culture of flexible leasing options. Like two companies can get into an agreement within themselves to use the same office space but on alternate days of the week. CRE landlords and business owners need to be prepared for such flexible offers to stay afloat in business.
Another big aspect is where a chain of office space owners will offer their space to employees across the whole nation, no matter where they are based. Such leasing options also need to be present, and companies should be allowed to scale this as per need.
Combine leisure with office space
Post-pandemic, the whole world has started to take their own mental health and their employees' mental health pretty seriously. Harvard Business Review pointed out that now most companies have changed their policies, office spaces, etc., to better focus on employee wellbeing. For this to work out properly, office spaces must combine leisure and work. Office space providers need to provide games rooms, common areas, cafeteria options, and such to help manage this trend.
Tenant screening is a must
If you have been in the CRE business of leasing office spaces for a while, you already know that you have to work with different kinds of tenants. But, business is already suffering a lot due to the pandemic, do not let them suffer more due to fraudulent tenants. You need to start using a selection of technology in project management to screen your tenants. This will allow you to run a background check on them, their business standards, and their employee records. This will also help you understand their long-term business intentions so that they do not scam you and leave in-between contracts.
Reimagine property management and operations
During the two-year pandemic, tenants and property managers had to adapt and change how they handled business. From remote property management to digital rent payment, everyone played their part in adapting to a new technology selection. You need to automate most of your property management work and operations to promote remote work in your offices and retain your employees.
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