How the post-pandemic world is changing commercial real estate
22nd Aug 2022
My LinkedIn feed and inbox have been inundated with conversations and articles focused on the state of CRE (Commercial Real Estate) and how employers can combat the ever-present void in their very expensive office space. Well-respected industry experts, Colliers and Gartner recently conducted surveys that highlight the predicament employers are in and how they plan to combat it.
The Colliers’ 2022 Innovation Summit found that 60% of companies will only need 50% to 70% of their existing office space in the coming three years.(1)
Seemingly in response to that finding, the Gartner survey found that about 72% of executives want to minimize their organization’s real estate footprint in the next year.(2)
Clearly, the pandemic has changed the way we work and, as the statistics above show, it looks like those changes are here to stay. Global real estate leader, JLL, predicts that 30% of office space will be flexible in some form by 2030.(3) This is a huge increase from pre-pandemic numbers and should come as welcome news to flexible office space providers around the world.
For commercial real estate brokers on the South Shore, Workspace is a great resource in which to direct local CRE clients that are downsizing. Our turnkey offices and flexible terms allow members to book an office, meeting room, or coworking space exactly when — and for however long — they need it. And the savings for employers is two-fold — significantly reduced rent AND all of the utilities and amenities are included.
Our convenient locations off major highways and near commuter rail and ferry stations allow our members to reap the benefits of a shorter commute. By saving employees both time and money, and creating a better work-life balance, business owners are more likely to retain the employees they have and will attract new talent to their team. This is going to be crucial, whether employers downsize their real estate footprint or not, as employees have embraced a remote and/or hybrid work schedule and will go wherever that option is available to them.
Sources:
1. https://www.colliers.com/en/countries/united-states/occupier-services/innovation-summit