A staggering 72 percent of decision makers believe the office is critical to doing business, according to JLL’s global Future of Work Survey.
The research shows that over the next several years companies anticipate hybrid work to become the dominant model and will be looking across their real estate portfolios to re-think their office spaces, invest in new technology and prioritise sustainability.
The office layout
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The mass adoption of hybrid work will have a lasting impact, with 77 percent of CRE leaders agreeing that offering remote or hybrid working will be critical to attracting and retaining talent in the future.
As the trend toward dynamic working will continue, successfully operationalising hybrid working will be the most important strategic priority for commercial real estate (CRE) executives over the next three years.
This includes exploring flexible space options, with 43 percent of companies planning to accelerate investment in flexible space between now and 2025, and 51 percent saying they will lease flexible space through a third-party provider.
“As the office finds a new purpose post-pandemic as a destination for collaboration in employees’ hybrid workstyles, occupiers will need to continue increasing their investments in creative spaces,” said Sue Asprey Price, CEO, JLL Work Dynamics (EMEA). “Enhancing socialisation, especially among a large, often geographically dispersed, workforce will be critical to future talent strategies, as the office accelerates its role as the innovation hub of the work ecosystem.”
Forty-five percent of organisations consider collaboration to be one of the primary purposes of office space and 73 percent have planned or are planning to make all office spaces open and collaborative, with no dedicated desk spaces.
Many companies are also investing in spaces that support new workforce priorities around health and wellbeing.
What other things should organisations strive to achieve in this new age?
As organisations face ever increasing pressure to deliver clear outcomes in the race to net zero and create social value through real estate, 77 percent say investing in quality space is a priority.
With green strategies having a direct impact on real estate decisions, 74 percent say they are likely to pay a premium for green credentials; further, more than half of occupiers (56%) plan to do so by 2025.
However, stakeholder aspirations are not solely environmental, with nearly eight out of 10 companies saying their employees expect their workplaces to have a positive impact on society.
This means increasing investment in social considerations will be equally as important as funding environmental objectives. With diversity, inclusion and wellbeing now falling high on the corporate agenda, companies are underpinning these objectives with further investment and resources.
Seventy-nine percent of respondents agree that their organisations are acting today to make the workplace more inclusive and diverse for all employees.
Investing in technology investments to boost workplace performance and productivity
Technology and data will be critical foundations in the future of successful real estate operations, but the gap that needs to be filled is immense.
Only 13 percent of CRE executives say they are collecting data on an ongoing or real-time basis using advanced analytics. With the transformative power of technology to shape the dynamic workplace, companies are focused on ramping up investments in intelligent solutions to unlock new opportunities for boosting workforce performance and productivity.
The research finds a clear roadmap for CRE technology shaped around 15 anchor technologies [link to this section of the paper since they’re not all being listed], including workplace apps, remote working technology, and virtual reality.
As organisations plan future investments, CRE leaders are focused on key strategic areas like sustainability and employee wellbeing.
By 2025, most companies (78%) plan to have incorporated over ten of the anchor technologies in their operations, and 40 percent plan to incorporate all 15.
Real estate needs are becoming more sophisticated and complex
To respond to the complex range of future of work challenges, CRE leaders will focus more on harnessing specialist skills to achieve their strategic objectives. Seventy-five percent of leading CRE functions anticipate greater reliance on external partners, with the two top areas for outsourcing growth expected to be health and wellbeing services (44%) and sustainability strategy (44%).
Further, as technology becomes a crucial platform to boost performance levels on all fronts, 43 percent say they will need more outsourcing support for CRE technology solutions over the next three years.
“The next three years will prove to be an inflection point for real estate as businesses plot their future path and rethink the purpose of their portfolio,” said Dr. Marie Puybaraud, Global Head of Research, JLL Work Dynamics. “The changes accelerated by the pandemic represent an opportunity to pause, think about a long-term real estate strategy and how it aligns with future business priorities.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
- Amelia Brand
- Amelia Brand
- Amelia Brand
- Amelia Brand
