Publications

- September 1, 2020: Vol. 7, Number 8

Here comes office innovation: The property type will accelerate changes in the face of the COVID crisis

by Sarah Borchersen-Keto

The innovation trend that emerged in the office sector prior to the coronavirus is only going to accelerate as organizations adapt to changes in how workplaces operate in a post-pandemic environment, according to Julie Whelan, head of occupier research for the Americas at CBRE.

Whelan, during a podcast interview with REIT Report, said innovation will be accelerated in large part by the success of the remote work model during the crisis.

“The office is now becoming just one place among a network of locations where work gets done, so of course the role of it is going to accordingly change,” she said.

Prior to COVID, organizations were moving to models that were less hierarchical, less routine driven, and more project driven — all of which requires collaboration, Whelan said. Going forward, the conflict between the need for collaboration and increased remote working will spur innovation in terms of the tools and technology used every day, and how physical workspaces tie the physical and digital together to drive seamless interaction, she noted.

Among Whelan’s other observations:

  • The disparity in pricing and vacancy levels between “really great space and lower-class space” will continue to grow as tenants become more discerning.
  • A CBRE survey of 126 global companies shows that organizations are focusing on time sensitive, tactical decisions such as lease renewals. Decisions related to longer term changes are on hold.
  • Seventy percent of companies surveyed see a future for full-time remote work. “A lot of organizations realize that what this COVID era is doing is pushing them to loosen their expectations of employees … to come into a physical office every day.”
  • Flexible office space has been hurt by the pandemic, but the survey shows there’s still a “strong need to use that space.”
  • Suburban and satellite office space will be particularly conducive to geographies with onerous commute times.

“First and foremost, clients are signaling to us that physical space is still going to remain an important part of their strategy,” Whelan said. “The office is now becoming just one place among a network of locations where work gets done.”

 

Sarah Borchersen-Keto is editorial director at Nareit. The article and podcast interview she did with Julie Whelan of CBRE, can both be accessed at this link: https://bit.ly/33yRJeT

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.