Businesses are demanding greater flexibility than ever from their office space and are looking to commercial real estate professionals to help them achieve this. Technological advances have revolutionised how businesses operate, allowing for remote collaboration and much more flexible working patterns to emerge.
Multi-purpose spaces are the new norm
As a result, commercial real estate occupiers are increasingly looking for office spaces that can flex to multiple purposes — a canteen that can double up as an informal meeting room, for instance, or even serve as an auditorium-type space for the large all-hands annual or six-monthly staff meeting.
What we’re seeing is a smarter use of the space and greater efficiency as businesses look to accommodate varying headcounts and needs from day to day. Along with these open, multi-purpose spaces that encourage a more collaborative way of working, there is a lot less exclusive space in the form of the corner suite.
CEOs and senior management are coming out of their individual offices and into larger open spaces. This physical permeability is leading to the breaking down of barriers from a hierarchy perspective and setting the tone across the board within companies.
The office space as a brand identity
Brands are increasingly using their office space to communicate who they are; technology and media companies, in particular, are keen on this approach. Candy Crush creators King.com has a young workforce that works long hours in a relaxed environment and they want their office space to reflect this ethos.
So, the office space has bright colours, a spiral staircase running through the four floors, beanbags and fusbol tables. This blurring of work and chill-out spaces appeals to the millennial demographic, as it makes the office a place more attractive place to spend lots of time in.
What we’re seeing is the design of the office accommodating the specific needs of a business’s workforce and thereby improving productivity. The wellness factor is also being incorporated into the office space and building, from access to natural light — which has a direct correlation to productivity — to cycle racks, shower facilities, lockers and access to gyms in order to encourage healthy lifestyle habits among employees.
Clients with larger occupier requirements tend to approach potential landlords early so that they can have input into the design of the building itself, not just the inside. Apple started its search for space five years ahead of time for this very reason.
The changing role of the real estate professional
This demand for a more personalised, bespoke service from both large and small businesses is changing the role of the real estate professional. While straight brokerage does happen, oftentimes we take a collaborative consultancy approach, working together with the client to come up with a clear brief that we go to market with.
During the process, we may challenge some of the locations on the client’s list and come up with new ones. Our location consultant business can analyse employees’ postcode to see how a move from, say, a West End to City location would affect their commutes.
Why efficiency is a top priority
Of course, there’s a delicate balancing act between the qualitative and quantitative factors of what occupiers want. While senior executive teams want an office space that meets the bottom-line they are all-too aware that their employees want to be in a central location with decent amenities, access to wellness and good transport.
That’s why efficiency is top of the list of priorities for occupiers; namely, how to take less space and use it more effectively.
I’m going to go out on a limb and say that the kind of developments I’ve been talking about here will make office-based work more attractive in the future. I don’t think remote working will disappear, but the desire for interaction and to get things done will bring people back into the office, which itself will be a cooler and much more welcoming place to be in.
The writer is Head of London Tenant Rep at JLL UK.
