The Pandemic era of recent years has drastically altered the way we work, and it’s had a significant impact on commercial real estate. With more people working from home (WFH) than ever before, companies are assessing their property needs and reevaluating how they use office space. This article takes a closer look at how some large organizations are approaching this shift, and examines the debate around the best way forward.
As companies navigate a post-pandemic world, there’s no one-size-fits-all solution for commercial real estate. Some organizations will need more space to accommodate social distancing, while others may reduce their footprint as more employees opt to work from home. Twitter’s announcement that they were going all-in on WFH opportunities may have worked for them, but Microsoft sees a hybrid model as the way forward.
According to recent news, ViacomCBS is planning for 70% of their workforce to WFH at least part of the time, while Google is adopting a 60/20/20 approach, with 60% of their employees coming into the office a few days a week.
Multiple survey results show that employees want the flexibility to work from home but also crave the social connections and collaboration opportunities that come with office life. Companies that opt for more flexible work arrangements may be able to save on real estate costs, but some may need more space to accommodate social distancing. With some organizations hesitant to sign long-term leases, there’s been a rise in short-term leases and co-working spaces.
The pandemic has brought about a shift in how we work and the commercial real estate industry must adapt to these changes. As companies evaluate their property needs and determine the best approach for their workforce, there’s no one-size-fits-all solution. The shift to more flexible work arrangements offers advantages, such as increased productivity, cost savings, and reduced commute times, but it’s essential to evaluate these benefits against the potential challenges. While the future of commercial real estate is uncertain, it’s clear that we’re entering a new normal with more flexible working arrangements and a greater focus on creating a setting that’s best for employees, customers, and clients.