The Impact of Remote Working on Commercial Real Estate

SEP-OCT 2017|BY KATERINA MANOU, REGUS, GENERAL MANAGER FOR GREECE, BULGARIA AND CYPRUS
For decades, one of the biggest markers of prestige for a business was its property: An imposing, large-scale office was the sign of a truly successful company.

The idea of property size as a marker of company prestige is  changing as increasing numbers of us turn away from the traditional model of commuting every day into a central corporate HQ. This is happening around the world—in the UK, for example, 15% of employees work from home, while in India, the figure has already hit 50%. As a result, the decreasing number of us using the traditional model is rendering these big, sole-occupancy office buildings a smaller part of the bigger picture.

For brokers, this could be seen as a threat to their bottom line, as their portfolio of large, single-site offerings becomes more and more outdated. This isn’t, however, the whole story. Using data gathered from our large client base through our annual Great Big Survey, we explore how brokers can reshape their offering to capitalize on the increasing preference for flexibility in how—and where—we do our jobs. These are the key takeaways from our survey:

Key Takeaways

  • The big corporate HQ is a traditional institution facing contemporary challenges.
  • Long-term market trends are turning against the traditional office deal: Companies are looking to reduce the amount of space they lease per worker.
  • Workers don’t like the traditional office, but they also don’t like working at home. It’s key to be able to offer them a midway house between the two, combining a short commute and easy accessibility with a professional, team-oriented environment.
  • The future of brokering is selling workspace, not just offices. Offering flexible, scalable solutions as well as options for traditional long-term leases allows you to meet the needs of companies and their staff alike.

Understanding the needs of companies

Social and economic trends that have been growing for decades are now reshaping our ideas about the modern office. For commercial brokers, they represent a challenge—and an opportunity—that you can’t afford to ignore.

Technology has always been seen as the enabler of remote working. But changing cultural attitudes have been just as important. We have perhaps now reached a tipping point: 54% of employees say their company allows them to work remotely sometimes, and 70% say flexible working arrangements are important. Nearly a third says they are more productive away from the office.

Brokers face a future where they could be chasing fewer and fewer significant traditional office deals. Or they face investing larger amounts of time and money to secure dozens of small deals to match the value of one major deal in the past. But there’s a third option, too: to change the way they work and fit into the new realities of the business world and the property market. The future of brokering is selling workspace, not just offices. Offering flexible, scalable solutions as well as options for traditional long-term leases allows you to meet the needs of companies and their staff alike.

You can download the full report at: https://www.regus.co.uk/work-uk/wp-content/uploads/sites/131/2017/07/Regus-_WP4_v6.pdf

No Responses to «The Impact of Remote Working on Commercial Real Estate»