Real Estate Strategy Reset - 8 CORE TRUTHS GUIDING THE FUTURE OF WORK - CBRE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Real Estate Strategy Reset 8 CORE TRUTHS GUIDING THE FUTURE OF WORK
Throughout these remarkably disruptive times, we’ve been listening to and learning from some of the most influential corporate real estate executives as our industry focuses on finding the path forward. Insights gained from corporate real estate leaders across the world throughout 2020 have underscored a confluence of approaches in four core areas—Talent, Location, Occupancy and Design & Experience—that will be at the forefront of our priorities and strategic outcomes for 2021 and beyond. Despite significant uncertainty, corporate real estate leaders must now embrace the unknown and confront the new realities of business. The following report outlines the eight core truths that CBRE experts believe are guiding companies today, as well as the key considerations corporate real estate leaders must examine when evaluating long- and short-term business decisions that will determine the future of work.
TRUTH
As employees return to the office, the Decentralized office strategies are TRUTH
desire for flexibility and choice will drive emerging as a tool to support existing
01 new behaviors in how and when they employees and attract new ones.
03
engage with spaces of all kinds.
TRUTH
Workplace policy must be fundamentally In the US, migration to lower-cost, high- TRUTH
reset in light of a more distributed quality-of-life markets has been a hallmark
02 workforce and hybrid workstyles. of the past decade and likely will continue.
04
Talent Location
THE FUTURE
OF WORK
Design &
Occupancy Experience
TRUTH
Companies that embrace The reimagined workplace will be an TRUTH
planning amid uncertainty can essential part of ensuring the wellness,
05 gain advantages in the current productivity and engagement of a
07
real estate market. distributed workforce.
TRUTH
Flexible solutions allow companies to Digital technologies will create smarter, TRUTH
more easily adjust their space usage, more efficient buildings and better
06 and occupier sentiment toward using employee experience, including creating
08
flexible office space is growing. safer and healthier workplaces.
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 3
Talent
Employees now expect more autonomy.
Employers who build trust and offer
choice will gain a competitive edge
in the race for talent.
RELATED CBRE SERVICES
Workplace, Occupancy Labor Analytics
Management & Design
4
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 5
TRUTH As employees return to the office, the desire for flexibility
01 and choice will drive new behaviors in how and when
they engage with spaces of all kinds.
STRATEGY CONSIDERATION
How often will workers engage with
the physical office and what will they
use it for?
Despite so much focus on
67% of employees desire a balance of office
remote work during the
pandemic, future real estate
and remote as their preferred workstyle.
strategies likely will not favor
When the COVID crisis is over,
fully remote or fully at the
where would you prefer to work?
office. Rather, strategies will
support employee choice over
FULLY AT THE OFFICE 6%
the experiences and actions that
allow them to integrate life and
work. MOSTLY AT THE OFFICE
(3+ DAYS/WEEK)
10%
According to our research, only
28% of employees desire a fully
EQUAL MIX OF BOTH
29%
remote arrangement. Most (2-3 DAYS/WEEK OF EACH)
employees want to work in a
more balanced way between MOSTLY REMOTE
(3+ DAYS/WEEK) 28%
home and the office, and most
employers anticipate supporting
this shift. While this will result in FULLY REMOTE 28%
lower utilization of the office on
a regular basis, it will not mean
an end to the office. Rather, it Note: 8% undecided.
represents a fresh start that Source: CBRE Workforce Sentiment Survey, 2020.
will allow company decision-
makers to reimagine the role
and functionality of the physical
6 CBRE Research | © 2021 CBRE, Inc.
offices. Fluidity in workstyles is
73% of companies anticipate supporting
not new; rather, the pandemic
has put a spotlight on a practice
balanced workstyles in the future.
that has been building slowly Source: CBRE Occupier Sentiment Survey, 2020
over the past decade.
With this accelerated change, The Hybrid Workforce Network
most occupiers are moving
toward models that support a
more balanced workstyle. Each
company’s approach will differ SATELLITE HOME PROJECT
OFFICE OFFICE
based on its strategic priorities NETWORK
and beliefs about which work
arrangements will enhance its
competitive position and enable
it to recruit, engage and retain
HEADQUARTERS
key talent. AS A NETWORK
MEETING
GYM/CAFE ON-DEMAND
FLEXIBLE
SPACE
Source: CBRE Research, 2020
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 7
TRUTH Workplace policy must be fundamentally reset in
02 light of a more distributed workforce and hybrid
workstyles.
STRATEGY CONSIDERATION
What are the policies and guidelines
needed to suit employee choice and
maintain a culture of accountability,
productivity, diversity and wellness?
The Physical Office is Still a Requirement for Most
Primarily Distributed Primarily
Office-Based Workforce Remote
Workforce Workforce
Full-Time Office vs. Full-Time Remote
Overall, most companies expect a requirement, companies on innovation and customer
that their workforce will still must develop formal remote engagement report special
be largely office-based. While work policies and standards challenges. For employees,
many are taking a conservative in collaboration with their feelings of isolation or lack of
approach toward full-time human resources, technology, connection with team members
remote work, some are assessing finance and legal departments. and visibility to leadership are
if upward of 75% of their Defining parameters for real concerns. As portions of
employees could work this way. different scenarios, such as the workforce return to the
New models are emerging such moving jurisdictions, will enable office while another portion
as the “virtual first” workforce companies to manage risks and migrate to a more remote model,
that primarily depends on complexities accordingly. leaders must be in tune with
remote environments but expect the potential for unintended
Additionally, although remote
that teams will come together on consequences once employees
working is favored by some, there
a regular basis to connect and are no longer under a restricted
also are commonly reported
collaborate. workstyle amid the pandemic.
areas of discontent among
Full-time remote is a very business leaders and employees.
different arrangement Companies that depend heavily
than allowing choice with
responsibility. Those companies
that are planning on even a
portion of full-time remote
workers are beginning to Evolving workplace polices must
weigh the realities of such an
balance a myriad of factors, including
arrangement. This could be
one area that fluctuates post-
health and safety considerations,
pandemic as approximately only strategic business priorities, digital
28% of employees desire to work enablement, local employment laws,
on a full-time remote basis. tax implications and the role of the
physical workplace. Effective cross-
The financial obligations,
compliance, employee
functional collaboration has never
engagement and liability been more critical.
considerations of remote work
KAREN ELLZEY
programs must be weighed, Executive Managing Director of Client Strategy,
including the unintended Transformation and Analytics & Global Workplace Solutions
consequences of imposing Crisis Management Lead, CBRE
full-time remote work on
employees who may not
welcome it. Whether this type
of work becomes a choice or
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 9
Location
Emerging migration patterns, new dynamics
around public transportation, population
density, and telecom infrastructure have
begun to impact location selection criteria.
RELATED CBRE SERVICES
Integrated Transaction Workplace, Occupancy Location
Labor Analytics
Solutions Management & Design Incentives
10Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 11
TRUTH
Decentralized office strategies are emerging as a tool
03 to support existing employees and attract new ones.
STRATEGY CONSIDERATION
Would providing a more decentralized
office strategy satisfy my employee base
that is highly mobile and/or encumbered
by commute times?
Same Market, New Network
Would you consider working at a company provided location closer to your home?
BY COMMUTE TIME
0-15 minutes
15-30 minutes
30-45 minutes
33%
29%
24% 45-60 minutes
14%
60+ minutes
Always Frequently Sometimes Never Always Frequently Sometimes Never
(1-2x/wk) (1-2x/mo)
Source: CBRE Workforce Sentiment Survey, 2020
12 CBRE Research | © 2021 CBRE, Inc.Sentiment toward high-density are near an increasingly dis- bat challenges such as commute
urban cores remains favorable persed workforce is of moderate times and feelings of isolation of-
in the long term, but employee but rising interest to occupiers, ten associated with remote work.
choice over when and where they especially those with portfolios
Flexible office providers are cap-
work will continue in the wake of in the U.S., Europe, India and
italizing on this emerging trend
COVID. Australia.
by more easily providing cost-ef-
Office-based employees will CBRE’s Workforce Sentiment fective, on-demand space. While
choose the urban-core location Survey of 10,000 global employ- hub-and-spoke portfolio solu-
part of the time to interact with ees across 32 companies found tions are unlikely to be a domi-
colleagues in an environment that 43% would either always or nant strategy , they most likely
that provides them the ameni- frequently prefer working at a will be pursued by occupiers in
ties, technology and space that company-provided location clos- those areas that offer the perfect
are critical to their productivity, er to their home. This sentiment confluence of market attributes,
enjoyment and connections with is largely driven by employees talent location and availabili-
others. But they will draw on a who have 45+ minute, one-way ty, mobility profile, real estate
network of locations the rest of commute times. By offering a availability and sustained mass
the time to conduct their work. network of locations closer to transportation barriers.
Establishing satellite offices that home, employers can help com-
A smart hub-and-spoke strategy is
about accessing and retaining top
talent. Satellite hubs near dispersed
employment pools can serve as
magnets, drawing workers in while
still allowing a fluid virtual workplace.
MARK SEELEY
Executive Vice President
Labor Analytics, CBRE
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 13TRUTH In the US, migration to lower-cost, high-quality-of-life
04 markets has been a hallmark of the past decade and
likely will continue.
STRATEGY CONSIDERATION
Where does talent exist to satisfy goals
of diversity and evolving skillsets
while maintaining an advantage over
competition?
40% of companies are proactively reviewing their location
footprint and considering alternative strategies.
Source: CBRE Occupier Sentiment Survey, 2020
It’s no secret that the ability opportunities to be a
If a company can
to attract highly skilled talent preferred employer and
create a business
drives competitive advantage for therefore limit competition
companies. Established markets for talent from others. The
strategy based on
that are epicenters of highly current environment allows meeting talent where
skilled and diverse talent remain many employers to challenge they are, it can
central to business strategy. years of legacy strategy to both reduce labor
Over the past decade, however,
take advantage of a less- costs and increase
lower-cost secondary markets
centralized workforce. its competitive
have begun to play an essential advantage relative to
role in many companies’ other major markets.
business and talent strategies.
KRISTIN SEXTON
These secondary markets Senior Managing Director
Labor Analytics, CBRE
offer more buying power for
companies, while providing
14 CBRE Research | © 2021 CBRE, Inc.US Migration Trends
2010-2019
Domestic Migration Natural Increase International Migration
100
80
60
40
20
0
-20
-40
-60
York
Francisco
Boston
Oakland
Denver
Phoenix
Chicago
Los Angeles
Washington, DC
Charlotte
Seattle
Fort Lauderdale
Baltimore
San Jose
Miami
Houston
Atlanta
Philadelphia*
Detroit
Dallas
SanFrancisco
NewYork
New
San
*Includes Philadelphia proper, Bucks/Montgomery Counties and Camden, NJ metro divisions.
Source: US Census, CBRE-EA.
Early data is indicating a possible diverse talent, they will be test markets and create potential
acceleration of migration trends, less dependent on an existing release valves (especially for
with markets such as Phoenix, physical footprint. This hard-to-find skill sets in the
Dallas and Charlotte increasing new dynamic may create technology sector). Labor-driven
their inflow over the past quarter. opportunities to broaden location strategy will become
Los Angeles, San Francisco and location strategies not only increasingly important as long
New York were the top export into secondary markets, but as diversity and inclusion, high-
markets for these inbound also tertiary markets with small demand skill sets and cost
metros, likely due to their pockets of skilled labor. optimization remain a focus
higher costs and higher density. for companies.
A small but influential number
While domestic migration is
of companies report that they are
not a new trend, time will tell if
experiment¬ing with a “virtual-
worker mobility is permanently
first” work¬force, allowing them
accelerated in the COVID-19 era.
to start hiring small numbers in
As companies think about
attracting, retaining and
supporting highly skilled,
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 15Occupancy
Companies are focusing on “no-regrets”
decisions that maximize flexibility for
requirements that are uncertain.
RELATED CBRE SERVICES
Agile Real Estate Integrated Transaction Workplace, Occupancy Automated Host Hana
Solutions Management & Design Building Solutions
16Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 17
TRUTH
Companies that embrace planning amid
05 uncertainty can gain advantages in the
current real estate market.
STRATEGY CONSIDERATION
How can companies mitigate risk around long-
term commitments and continue to develop
progressive real estate strategies?
60% 70%
Aggressively pursuing efforts to reduce space Paused expansion in the face of uncertain
given currently low levels of occupancy space requirements
Source: CBRE Occupier Sentiment Survey, 2020.
As companies weather the the time needed to successfully All these things have present
recessionary impacts of 2020 and execute these strategies, varies. and future cost and balance
further grapple with extended sheet implications that must
Focusing on portfolio strategy
remote work requirements driven factor into accounting analysis,
to ensure that the real estate
by the pandemic, the need to ownership structures and capital
footprint can shift as trends
plan amid uncertainty has never priorities as decisions unfold.
unfold is critical.
been more critical. Identifying the appropriate steps
Changing market fundamentals in the near, mid and long term
Creating an updated portfolio
may trigger transaction activity; helps to create opportunities
strategy to align with corporate
evolving space utilization may that can provide iterative
goals can be a daunting task,
trigger optimization efforts, changes that make a big impact
since real estate is traditionally a
and accelerated demographic on a traditionally long-term
long-term committed asset. The
trends may trigger new location committed real estate portfolio.
degree of difficulty, as well as
and space considerations.
18 CBRE Research | © 2021 CBRE, Inc.Updating Real Estate Strategy
• Create business case for leadership
• Build consensus among stakeholders
• Identify implementation decision dates
Revisiting Repositioning Realizing
Occupancy Models Future Footprint Expense Reductions
• Remote Work • Revisiting Future Plans • Financial Analysis
How flexible models will impact Identify specific portfolio Cash & GAAP
the real estate plan and how it scenarios
• Balance Sheet & Income
can be implemented
• Value Creation Statement Strategy
• In the Office Through monetization or Timing and structure
Planning required investments repurposing of real estate for assets
in cleaning, technology, assets
• Capital Investments
workstations, and conference
• Location Strategy Prioritizing when to continue
room
Repositioning the location and investments and when to pause
type of space within or across
markets
Source: CBRE Consulting, 2020.
Although efficiency remains top of
mind, taking a step back to really
challenge the status quo given
anticipated workforce behavior
changes is critical to future strategy.
MIKE NELSON
Senior Managing Director
Consulting, CBRE
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 19TRUTH Flexible solutions allow companies to more easily adjust
06 their space usage, and occupier sentiment toward using
flexible office space is growing.
STRATEGY CONSIDERATION
What requirements in your portfolio
would be better suited for more flexible
office space options?
56%
Anticipate using more
37%
Expect flexible office space
82%
Will favor buildings
flexible office space in to play a significant role in the future that offer
their future real estate in their future real estate flexible office space and
strategy. strategy. shared meeting options.
Source: CBRE Occupier Sentiment Survey, 2020.
20 CBRE Research | © 2021 CBRE, Inc.Many occupiers are increasingly flex access within the building
using flexible office space as or the nearby area. Should
part of a programmatic strategy headcount grow or the need for
that allows them to maximize additional overflow and meeting
their long-term commitments space arise, flex space can
while also minimizing their risk accommodate it.
of having too much or too little
When flex is not viewed as a
space as headcount fluctuates.
standalone solution, but rather
Implementing more flexible as a piece of a holistic portfolio
approaches allows companies to strategy, it is not uncommon to
remain nimble in the face of the realize savings of between 25%
current economic situation and and 30%.
the profound shift in workforce
behavior—both of which are
still in flux. This strategy, when
delivered under the appropriate
structure, offers occupiers the Flexibility will be the key to
opportunity to ensure their corporate resilience. Companies
headcount requirement, improve that adopt an agile approach to
their financial performance and their real estate strategies will
reduce capital expenses. be better equipped to navigate a
Given today’s uncertainty around rapidly changing landscape around
headcount and utilization the work or office environment.
projections, it is smart to develop
MANISH KASHYAP
solutions under the assumption
Global Head of A&T - Agile, CBRE
that the future is unknown and
flexibility is required. Instead
of asking whether demand
projection is uncertain enough
to warrant flexibility, companies
should change their perspectives
to ask whether their headcount
projection is solid enough to
make a long-term commitment.
Making a long-term commitment
based on more real-team space
needs can be supplemented with
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 21Flex Offices: A Market in Constant Evolution
JUST IN TIME DEDICATED
On Demand Coworking Suites Enterprise LL Spec Suites 2.0
Emerging space Membership shared Licensing Agreement Licensing Agreement Lease for a dedicated
communal space no dedicated closed Dedicated private private floor(s) fit-out per
Open access desk dedicated desks space with dedicated floor(s) fit-out per client LL specifications from 24
pass or conference desks within a shared specifications from months and up
rooms, event Some offer global access environment from 12 months and up
booking month-to-month 3 months and up
Source: CBRE Agile Practice Group, Q3 2020.
Just as cloud computing and ride estate strategy can provide a new practices, such as mapping
sharing have transformed legacy productive, efficient and flexible proximity and availability of
industries, flexible office space real estate portfolio that allows flex locations as an extension
is transforming commercial real occupiers to match commitment of their existing portfolios. As
estate. terms with the level of business new headcount requirements,
uncertainty. utilization patterns and location
Each type of flexible space
strategies emerge, companies
option aspires to offer the right With this increasing array of
can use flexible space options
space at the right time, with truly flexible alternatives, there
to quickly provide business
little waste. With utilization has never been a safer time to
solutions. This is a fallback
rates becoming a more common be wrong about future space
strategy that has not been
measure, occupiers are becoming usage. Occupiers now have
available in previous cycles.
more aware of how much space the luxury of adopting a wait-
goes unused and the associated and-see approach, rather than
cost of that underutilization. making long-term decisions
Underutilized space (no matter that will create long-term cost
how inexpensive) is not a good challenges. Those with truly agile
use of funds. An agile real portfolio strategies will adopt
22 CBRE Research | © 2021 CBRE, Inc.Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 23
Design and
Experience
New design standards and technologies focused
on health, productivity and communication will
bind the workforce together across a physical and
virtual real estate footprint.
RELATED CBRE SERVICES
Workplace, Occupancy Automated Building
Host
Management and Design Solutions
24Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 25
TRUTH The reimagined workplace will be an essential part
07 of ensuring the safety, wellness, productivity and
engagement of a distributed workforce.
STRATEGY CONSIDERATION
How does a company best assess its needs
and then utilize its space to maximize the
productivity of individuals, collaboration
needs of teams and effectiveness of events
and meetings?
For the physical office to remain a competitive advantage, companies must manage change
and drive unprecedented levels of innovation tailored to serve the needs of a more flexible
workforce while supporting unified goals.
This means aligning design and experience to flexible workforce needs.
26 CBRE Research | © 2021 CBRE, Inc.Activity-Based Work
Neighborhoods of open Cafe spaces that double as
workstations for focused work collaboration areas
Open collaboration zones Variety of settings to match
with integrated technology your variable schedule
50% 25% 10% 15%
ME WE SUPPORT AMENITY
Source: CBRE Design, 2020.
Activity-based work (ABW) were already addressing pre- employees to be effective and
environments will be the new COVID. ABW design excels at connected while in the office and
baseline for companies, as supporting a workforce that allows employers to be efficient
most employers adapt to meet uses the office to engage in both with their space strategy.
employees’ desire for a more individual and collaborative
An additional benefit of ABW
balanced workstyle and greater activities, but not every day.
is the sharing of ideas and
flexibility.
ABW is best implemented as information as employees
Companies previously adhering free address (no dedicated move between spaces based
to traditional space models likely seats), where employees instead on their activities versus strict
will find themselves continuing report to a shared zone or confinement to designated areas
to pay for underutilized space— neighborhood. This “best of or floors based on department or
a negative trend that occupiers both worlds” approach allows specialty.
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 27Team-Based Work
Reconfigurable workstations
for teams of all sizes
War room settings to make
your teamwork productive
Large cafe space for team Informal spaces to
Variety of break-out areas socialization and casual collisions collaborate comfortably
within team space
40% 40% 8% 12%
ME WE SUPPORT AMENITY
Source: CBRE Design, 2020.
Occupiers increasingly report engage in the office when they
that remote and home-based primarily need to collaborate
work arrangements are taking with their team on a specific
a toll on team-based work, such task or project. They report to
as creative ideation, innovation a “campsite” shared with their
pipeline development, project team, with additional
impromptu conversations and collaborative and social venues
social connections—all of which nearby.
are best achieved in person. A
team-based workplace design
concept allows employees to
28 CBRE Research | © 2021 CBRE, Inc.Event-Based Work
Large cafe space for Semi-private break-out space
townhall meetings for individuals or small teams
Flexible space for events, Phone niches provide High tech telepresence
training and team break-out alternate work zones during room merges phyical
events and digital
15% 55% 10% 20%
ME WE SUPPORT AMENITY
Source: CBRE Design, 2020.
Changing occupier expectations To compete with the ubiquitous
are driving a unique, hospitality-
connectivity available in a 5G
inspired aspect to employee
world, the office must be the best
experience. An event-based
workplace design allows
venue to connect with colleagues,
employees to conduct most of experience brand and mission,
their individual work at home and get work done.
and come to the office primarily
LENNY BEAUDOIN
for scheduled meetings and Executive Managing Director
events. They spend most of Workplace, Design, Occupancy, CBRE
their office time in meeting and
social spaces. The innovations
in workplace design will help
companies meet the needs of an
even more mobile workforce.
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 29TRUTH Digital technologies will create smarter, more efficient
08 buildings and a more connected employee experience
including creating safer and healthier workplaces.
STRATEGY CONSIDERATION
How do companies upgrade and implement
property technology, or “proptech,” to drive
connectivity, innovation, environmental
sustainability and efficiency in commercial
real estate buildings?
Video HVAC
Audio Visual Lighting
Internet
Fire/Life Safety
& WiFi
Access
Occupancy
Control
Parking Metering
Source: CBRE Smart Buildings and IoT, 2020.
30 CBRE Research | © 2021 CBRE, Inc.Measuring, monitoring and technologies can be used to
visualizing critical health and address energy efficiency and
safety information is an essential meet sustainable building goals.
element of reestablishing the
While these services can
workplace as a destination.
be provided through new
Building technologies enable technologies, they can also be
transparent environmental delivered through strategic reuse
monitoring, operational of existing building systems.
adjustments and rapid
communications to building
occupants. In addition,
Examples:
• Basic occupancy sensors reframed for strategic staff seating assignments.
• Janitorial service targeting (and confirmations), and/or warnings on excess foot traffic
• Reframing of HVAC sensors intended for periodic system balancing to identify higher-risk stale air
zones, targeted system optimizations and/or secondary circulation or disinfection measures.
• Motion-based lighting and AV systems as a base source for assigning janitorial teams to execute
higher SLA scopes across lower footprints.
Tech is enabling a true link artfully integrated. Building a
between supply and demand, technology roadmap is a key
matching verified needs to consideration for occupiers as
available resources. they determine what is most
important to them (e.g., building
The strategies are endless,
systems, sustainability, occupier
but one thing is clear: The
experience).
building’s technology and
management teams must be
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 31Anticipating the Future
of the Smart Practices
In Process In Demand
Today Tomorrow
60% 68%
reviewing building systems indoor air quality
55% 63%
requiring reservations for connected technologies/
office use building apps
43% 50%
installing touchless touchless technology
technologies
Source: CBRE Occupier Sentiment Survey, 2020.
In the wake of COVID-19,
building technology stands
alone for the unique sense
of continual transparency,
optimization and commitment
that building occupants now
require from their management.
MATT TONER
Managing Director of
Smart Buildings & IoT, CBRE
32 CBRE Research | © 2021 CBRE, Inc.Our goal is to allow
employees to make
decisions with productivity
in mind, pairing them with
recommendations based
on their desired work style,
who they are meeting with
and the services in the
workplace.
BRENNAN McREYNOLDS
Senior Vice President, Host, CBRE
Additionally, employees are prominence as an essential part important intersection of the
adopting a more mobile of the employee experience. physical and digital worlds and
workstyle, and our workplaces in must develop strategies that
Artificial intelligence-driven
turn are expected to more easily effectively merge them to shape
recommendations are expected
adapt to the needs of sometimes the future of how people interact
to help employees make
transient occupants. Technology with the workplace.
informed decisions of when
applications are at the forefront
to go into the office based on
of delivering intuitive solutions
meeting schedules and other
to employees to streamline their
colleagues’ work patterns. This
daily interactions within their
will foster collaboration between
community, workplace and even
a more fluid workforce that will
with each other. From scheduling
be essential for companies in the
health screenings and space
future.
reservations, to enabling a
touchless experience, these apps Office occupiers are sitting
are growing in sophistication and squarely at the increasingly
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 33CONCLUSION
Corporate real estate leaders
have a critical role to play as
stewards of the future of work.
Leaders will systematically
consider transformative models
and facilitate cross-functional
strategies to enable successful
business outcomes.
34 CBRE Research | © 2021 CBRE, Inc.As companies navigate 2021 and beyond, commercial real estate’s critical contributions to strategic business outcomes will be more evident and essential than ever before. Now is the time for corporate real estate leaders to seize the unique opportunity afforded by the global pandemic to fundamentally rethink and reset both their own and their teams’ roles in supporting enterprise recovery and resiliency. Multidisciplinary teams will be critical to keeping interconnected real estate decisions front of mind as companies mitigate risk and develop the future of their long- term footprint, talent strategy and employee experience. This strategic evolution will require shifting from traditional approaches to embracing new, more transformational commercial real estate models and methods, including reimagining the scope, connectedness and use of the workplace.
REPORT AUTHORS
Julie Whelan Lenny Beaudoin Brennan McReynolds
Vice President Executive Managing Director Senior Vice President
Global Head of Occupier Research Workplace, Design, Occupancy Host
Julie Whelan is an authority on Lenny Beaudoin oversees the Brennan is passionate about how
workplace trends driven by the integration of CBRE’s Global technology can enhance and inform
evolution of demographics and Workplace, Occupancy, and Design workplace experience. He is the Global
technology in our society. As CBRE’s practices to provide our clients Product & Technology lead for Host,
Head of Occupier Thought Leadership, competitive advantage through a proprietary service offering for
she regularly speaks at industry actionable workplace strategies, corporate occupiers and institutional
events and is frequently quoted in informed occupancy planning, great property investors designed to meet
the media about the office and data design, and superior delivery of the the rapidly growing demand for
center real estate markets. Julie is future work environment. enhanced employee experience in the
well-versed on the evolution of flexible workplace.
office space in the real estate industry. +1 212 984 8139
As a “xennial” (caught between the lenny.beaudoin@cbre.com +1 301 202 0976
Gen X and millennial generations), brennan.mcreynolds@cbre.com
she understands firsthand why this
evolution of the workplace is so critical
to the future success of our workforce. Christelle Bron Mike L. Nelson
Americas Agile Practice Leader Senior Managing Director
+1 508 789 7085 Advisory & Transaction Services
julie.whelan@cbre.com As leader of CBRE’s Americas Agile
@juliewhelancbre Real Estate Practice, Christelle Bron Mike Nelson has overall responsibility
and her team advise clients on agile for managing CBRE’s Portfolio
real estate strategies – from coworking Optimization Group on a national
and flexible space to optimized basis. He assists both private and
Karen Ellzey
portfolios – throughout the Americas. public sector clients in developing
Executive Managing Director
Ms. Bron has more than 20 years of portfolio optimization plans,
and Global Lead, Client Strategy
real estate consulting experience headquarters strategies, and
and Transformation
and previously led CBRE’s Integrated feasibility analyses with special
Transaction Solutions team for the expertise in capital structure
Karen Ellzey is the Executive
Eastern U.S. optimization, leasing/ownership
Managing Director of Client Strategy
strategies, financing strategies and
and Transformation. The team
+1 212 984 8000 accounting and tax implications of
delivers next-generation solutions
christelle.bron@cbre.com real estate transactions.
and business analytics to occupiers
of commercial real estate, as well as
+1 213 613 3333
thought leadership through programs
m.nelson@cbre.com
such as the CBRE Institute and other
strategic initiatives. Travis Deese
Associate Director
+1 617 8696154 Occupier Research
karen.ellzey@cbre.com
As the U.S. Associate Director of
Occupier Research, Travis Deese
identifies and analyzes workplace and
market trends impacting occupiers,
primarily in the office sector and the
ever-evolving flexible office industry, to
properly advise CBRE’s clients on real
estate decisions. With over a decade of
experience in commercial real estate,
Travis has worked on the local, regional
and national scales serving as the
primary thought leader for the metro
Atlanta, Southeast and U.S. markets.
+1 404 441 4239
travis.deese@cbre.com
36 CBRE Research | © 2021 CBRE, Inc.Mark Seeley Kristin Sexton Matt Toner
Executive Vice President Senior Managing Director Managing Director
Labor Analytics Labor Analytics Smart Buildings and IoT
Mark Seeley, Executive Vice President Senior Managing Director for CBRE Matt Toner is CBRE’s Managing
for CBRE’s Labor Analytics, and leads Labor Analytics, Kristin has extensive Director of Smart Buildings and
the team’s consulting practice. Mark experience in developing sophisticated IoT. He is responsible for developing
has practiced corporate location and strategies for clients including: M&A and delivering a new generation of
labor analysis consulting since 1998, portfolio optimization, site selection, client solutions; combining rising
and is one of the nation’s foremost workforce longevity & sensitivity capabilities in industry technology,
experts on labor market conditions assessments and cost-benefit analysis occupant experience and building
domestically and globally. He for portfolio decision support. In operations. Matt’s personal focus
specializes in workforce optimization, addition to portfolio evaluations, areas include strategic solutioning,
location strategy, site selection and Kristin has led the development of future visioning, global partner
on-site labor assessments. analytical models for use in labor development, and operational
market assessments and site selection. investment.
+1 602 735 5230
mark.seeley@cbre.com +1 602 735 5247 +1 302 373 0903
kristin.sexton@cbre.com matthew.toner@cbre.com
RESEARC H LEADERSHIP
Richard Barkham, Ph.D. Spencer Levy Henry Chin, Ph.D.
Global Head of Research Chairman Americas Research & Head of Research, APAC
+1 617 912 5215 Senior Economic Advisor +852 2820 8160
richard.barkham@cbre.com +1 617 912 5236 henry.chin@cbre.com
@RichardJBarkham spencer.levy@cbre.com
@SpencerGLevy
G LO B A L L E A D E R S H I P
Karen Ellzey Whitley Collins Guy Holden
Executive Managing Director Global President of A&T – Occupier Managing Director, A&T – EMEA
and Global Lead, Client Strategy +1 310 363 4842 +44 207 182 3089
and Transformation; whitley.collins@cbre.com guy.holden@cbre.com
COVID-19 Response and Reopening Lead,
CBRE | Global Workplace Solutions Brandon Forde Manish Kashyap
+1 617 8696154 President, Client Solutions Global Head of A&T – Agile
karen.ellzey@cbre.com +1 404 504 7884 +65 6326 1220
brandon.forde@cbre.com mansih.kashyap@cbre.com
Real Estate Strategy Reset | 8 Core Truths Guiding the Future of Work 37Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE. All COVID-19 related materials have been developed with information from the World Health Organization, Center for Disease Control & Prevention, and strategic suppliers providing services in affected regions. They may not be suitable for application to all facilities or situations. Ultimately, occupiers and landlords must make their own strategic decisions for their individual stakeholders and workplaces. CBRE’s guidance is intended to initiate those discussions and expedite the process. We make no representations or warranties regarding the accuracy or completeness of this material. CBRE disclaims all liability arising from use of these materials by others.
You can also read
