Large banking and technology firms are keeping the real estate industry on the edge of their seat after indicating they could be getting rid of their offices in lieu of remote working arrangements.
This is not the first time society has anticipated the demise of the office. When the internet became widely adopted, many people believed that companies would move to a remote workforce. But as it turns out, humans need socialization and that prediction did not hold up. Now, real estate experts are expecting four key outcomes from the pandemic.
Demand for office space may not be greatly impacted, but could dwindle slightly as companies continue to restructure their portfolios and work to meet the needs of a more flexible work environment.
With this, flexible office demand will likely rise, but not without operators making their own changes in order to meet the cultural changes that have emerged from the pandemic.
Landlords and tenants will also need to form a closer relationship in order to boost the experience of the office, which could come in the form of partnership agreements.
Lastly, technology will become an essential part of driving workplace revolution as companies emphasize the importance of collaboration, community and wellbeing, particularly for those working remotely.