As companies prepare to welcome employees back into the office, commercial real estate experts anticipate a major change in operational models as business leaders remain concerned about the safety of workers.
Many industry analysts expect that workspace density will decrease greatly, and employers will offer hybrid work arrangements that allow employees to work both in-person and remotely to reduce square footage. With this, suburban offices will likely see an uptick in demand.
“The places that will benefit will be in the suburbs, and that’s what we’re advising a lot of our clients right now — to look at suburban office,” said Steve Pumper, a Transwestern Executive Managing Partner.
Pumper added that well-equipped suburban offices will do well over the next few years as workers will want to avoid long commutes and public transportation.
Michael McNamara, Manulife Real Estate Global Head of Real Estate Investments, said he believes that the “hub-and-spoke” model could also gain traction, where companies have a core office in major cities, but will also have a satellite location that allows staff to work closer to home.
Regardless of the model a company chooses, it is clear that organizations are leaning towards more flexibility for when and where people perform their best work.