What’s going on:
Amid an uncertain economic climate due to rising inflation and high rates, businesses are seeking to reduce real estate costs without compromising on workforce availability and office space quality. According to the What Occupiers Want 2023 study by real estate consultancy firm Cushman & Wakefield, the most important concerns driving corporate real estate (CRE) strategies in Europe, the Middle East, and Africa are the level of cost, according to Business Review.
This is followed by access to talent, and adherence to Environmental, Social, and Governance (ESG) standards. The survey reveals that, on average, companies are willing to pay up to a 22% premium for buildings with green credentials, according to Business review. The Cushman & Wakefield study also indicates a growing trend towards accommodating the hybrid work model, with firms increasing common spaces and granting employees more flexibility and autonomy.
Why it matters:
The evolving CRE strategies are indicative of broader changes in the business world as companies navigate the financial pressure of the post-pandemic economy. Businesses are adjusting to new work environment models like hybrid work, which is also impacting office occupancy rates. The also study shows how there is a growing recognition of sustainability as a value-adding factor in commercial properties.
How it’ll impact the future:
Property owners might redesign traditional office spaces to create a more flexible, innovative, and sustainable working environment, with an increased emphasis on ESG standards. Hybrid work models are also likely to become more common, potentially influencing the design of traditional office spaces.
