Stephanie Boyle
Content Marketing Manager, VTS
Work from home, hybrid and flex, in-person: no matter how tenants choose to work, the recent evolution in working styles has forced commercial real estate firms to become incredibly agile.
As we explore the evolving landscape of work and office spaces, we witness the transformative power of flexibility, technological advancements, and the ever-present need for innovation.
Nick Romito, CEO of VTS, spoke in an expert panel at the 2023 Realcomm event, discussing the part that technology plays in workplace evolution, and why embracing change is essential.
In this blog, we will delve into what the industry looks like today, how different working styles have influenced real estate and the workforce, and why technology and data is the key to future-proofing commercial real estate firms.
State of the industry
Even as the world adjusts to new ways of working, the traditional office space remains relevant.
Many predict that large-office clients will continue to create flexible spaces, providing a dynamic and adaptive environment. The trend of shorter leases, moving from 10 years to just one, highlights the need for effective marketing and lead generation strategies.
The VTS Office Demand Index (VODI) reports that remote and flexible work options have had a significant impact on tenant demand, with certain markets experiencing a decline in occupancy rates.
This highlights the need to activate entire portfolios and adapt to the evolving definition of the workplace.
The shifting tide of office space
As the COVID-19 pandemic swept across the globe, it forced companies to reimagine their approach to the workplace. Many prominent players in the real estate industry embarked on contrasting journeys during this transformation.
Some businesses made a 180-degree turn in their work-from-home policy. They adopted a flexible approach and fostered increased communication with employees while remaining committed to preserving their company culture and reconsidering the optimal use of office space.
On the other hand, VTS prioritized safety above all else, initially sending everyone home. As conditions improved, they gradually transitioned employees back into the office for three days a week, recognizing the efficiency and value of in-person collaboration.
Leveraging the talent equation
One critical aspect of the return to the office revolves around talent acquisition and retention. Companies must strike a balance between accommodating remote work preferences and ensuring meaningful in-person connections.
There is an emphasis on the importance of nurturing talent in key hubs, where formalized office time becomes an integral part of the work experience. Top firms have embraced finding a balance of in-person and work-from-home.
One CRE business has a flexible approach to building teams where members get together once a month, allowing for synergies to thrive while still valuing individual autonomy to find a way of working that fits their lifestyle best. This allows stakeholders to have ownership of their workspace while supporting the collaborative goals of the organization.
The importance of office hubs and collaboration
While the digital age has brought us closer together virtually, there’s no denying the power of face-to-face collaboration. The key to unlocking the peak performance of both working styles is to effectively understand their benefits.
By recognizing that talent is not confined to specific locations, they remain open to exploring talent pools beyond traditional hubs. When firms explore hiring remotely, they widen their pool of qualified candidates, ensuring they lock in quality hires. In commercial real estate, experts in different regional markets can also provide an edge that competitors may lack if they only hire locally.
Leaders have acknowledged that certain functions can be performed remotely, yet they emphasize the benefit of in-person collaboration for many teams. In-office work means teams can brainstorm and problem-solve faster, and building relationships with clients is easier to do when in person.
Hubs create a place for remote and in-person employees to come together, bridging the gaps that the two working styles have on their own.
The role of emerging technologies
Artificial intelligence (AI) is emerging as a key player in various industries, including commercial real estate. Industry professionals advocate for a gradual and inclusive approach to AI adoption, ensuring that people understand its potential benefits.
However, the continued development of technology using data is the best way to ensure solutions are tailored to the real estate sector’s unique challenges. Not only is it crucial to prioritize data quality to confirm AI’s business value, but it is also essential to consider customer needs when automating processes.
For example, the success of chatbots in the multi-family sector showcases how technology can enhance customer experiences and streamline operations. Collaboration, consolidation, and a focus on delivering critical outcomes will shape the future of property technology.
Embracing the future
The lessons learned from the pandemic have prioritized flexibility, collaboration, and adapting to change. By embracing new possibilities, nurturing talent, and leveraging technological advancements, companies can build resilient and thriving environments for their employees.
As we move forward, leaders need to remain open to the ever-evolving landscape, ready to seize the opportunities that lie ahead.
Conclusion
Change is a constant companion, guiding us along unexpected paths. The real estate and technology industries are witnessing a remarkable evolution in work and office spaces.
To navigate the future, stakeholders must remain open to change, fostering innovation and embracing the potential of emerging technologies. This creates dynamic, engaging, and purpose-driven work environments that bring CRE into a new era.
Stephanie is a Content Marketing Manager at VTS.