As a commercial property owner or manager, flexibility is required in order to maximise success in the post-covid working world.
COVID has given rise to the term ‘hybrid working’, which refers to office employees spending two to three days in the workplace and the rest logged in and working from home. For many people, this has created the ideal balance they have been craving. Workers are spared the five-day-a-week commute and can use the extra time to sleep, catch up on housework or enjoy being with their families. On the days they do commute, traffic will be lighter and the journey less stressful.
The big challenge presented for real estate professionals is the diminished need for office space. If a business only has a percentage of staff present every day, it doesn’t require a desk for each of them. As a result, companies of all sizes are reconsidering their commercial office space requirements.
As reported by commercialrealestate.com.au, nearly half of the big commercial companies around the world are looking to make changes to their property portfolio as a result of COVID. The article shared how “More than a quarter are planning to reduce the amount of space they own or lease, while another 30 per cent are looking instead to change the way they use their premises to suit future work trends.”
While this is based on the results of a global survey, the trend is sure to have a similar impact in Australia.
Here are a few things to keep in mind from a commercial real estate perspective.
The office still has its place in society
Few companies are going completely remote as there is still a great deal of value placed on in-person interaction.
However, with daily occupancy greatly diminished, spaces and requirements must be re-imagined.
For some businesses, the answer is to downsize and lease less office space. Other companies are being creative and reconfiguring the areas they have, for example creating conference rooms which can be leased by the hour without interrupting the workflow or security of the people on site.
Those who are downsizing are also looking for a different type of work space. They want to make collaboration a priority when people are physically present so may be seeking a more open plan format with additional breakout spaces.
As shared by one UK article, ‘Workplace 3.0’ “is a destination – a collaborative and social hub inspired by the hospitality world but with space for quiet work. Visually-attractive, it’s a balanced workplace which reflects organisations’ environmental and social beliefs with a focus on wellbeing.”
While the home will be reserved for productivity and focus, offices and the experience people have when they are on site will actually be key enablers for recruitment, retention and organisational success.
The ‘hub and spoke’ model
This refers to businesses which are transitioning to have a larger central office and several ‘satellite’ offices which give people a professional work environment without the need to travel so far from home.
For suburban real estate agency owners and property managers, this presents an opportunity. Leasing office space in the suburbs either as coworking rooms or satellite premises offers the chance to build a more diverse portfolio.
Talk to your clients
For anyone managing a commercial property portfolio, communication and flexible thinking are required. It may not be possible to lease a large office space to a single company in the way it was prior to 2020. However, this does not mean you can’t work with the building owners to come up with a profitable solution. Perhaps dividing one space into two or even more will be worth the investment, to attract occupants and increase rental income.
Right now, anyone who oversees commercial property or owns such an asset must be prepared to listen to their clients and work with them to find suitable solutions for the hybrid but still highly important workplaces of the future.
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