The Global COVID-19 Pandemic is expected to act as a catalyst for transformational change upending business models everywhere. Whilst limited supply and predictable demand have helped protect the Property Industry from widespread disruption, a fundamental reorientation of the value chain may be on the horizon as the Industry reforms around the ultimate customers of commercial space, i.e. Corporate Occupiers (who are challenged with demands to support increasingly fluid business models whilst also improving operational efficiency) and their employees (who after working by themselves during the pandemic are now pondering whether their alternative workplace destination is worth the journey).

This series of thought leadership article explores some of the challenges and opportunities which are likely to arise as Corporate Occupiers prepare for what the World Economic Forum has defined as ‘The Great Reset’ ahead (move to an all-digital, work-from-anywhere world).

No Ordinary Disruption  (Part One)

Quote

Whilst disruption is inevitable, the speed, scope and scale of the current digital revolution is of a magnitude never seen before with twenty thousand years of progress expected during the 21st century.  - Ray Kurzweil

The COVID-19 pandemic will undoubtedly mark a major turning point for the Property Industry as organisations challenge the status quo, conscious of the need to set a new strategic direction.

Aggregate days spent in central offices are forecast to fall in the order of 30% as agile / remote working practices become normalised leading to an era of rationalisation and repurposing of as organisations simultaneously attempt to realign thier corporate offices in an post pandemic environment framed by uncertainty and heighten costs pressures.

The end of presenteeism and widespread adoption of remote working practices, reflect both employee preferences to continue working from home and a new normal in accepted working practices with 2-3 days a week in the office expected to become typical for most knowledge worker roles.

Whilst the property industry has remained relatively immune to the impact of digital disruption over the last 20 years, the pandemic has undoubtedly redefined the corporate real estate landscape and forced the future of work to arrive earlier than expected.

As the Industry prepares for a paradigm shift in demand, Corporate Occupiers everywhere will likely spend the next 12 -18 months rethinking aggregate space requirements, re-articulating the purpose of their corporate footprint and exploring alternative workplace solutions.

Anywhere, anyplace, anytime may be the new mantra for corporate real estate executives as the widespread adoption of distributed working practices are expected to be maintained once the pandemic is finally tamed.

As the corporate footprint is rationalised and repurposed, a more competitive market for occupiers will likely arise. Whilst new hybrid office models will cement changes in our workplace landscape and reduce average space per employee metrics, it is also evident that many Corporate Occupiers may be willing to invest significantly more in their 'core' real estate holdings, as a result of increased demand for smart office technologies and increased spend on collaboration technologies.

The tidal wave of disruption ahead, coupled with; the repurposing of office space, a more competitive market for occupiers and major space rationalisation programs will likely result in a reorientation of the Property Industry around the occupier and a pivot from project to customer centric business models.

What do you think ?

Has our Covid-19 remote work experiment changed the purpose of our offices?

'The Occupier World is Changing’ will form the basis of my next article.

Blueprint for a Connected Occupier in a Collaborative World

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