Faced with a brand new panorama, main know-how corporations are inspecting their actual property portfolios and redefining their office methods, in keeping with a brand new report from JLL. Know-how Workplace Areas explores what these tech corporations are using as their hybrid work methods and the way they’re balancing flexibility with productiveness.
Over the previous few years, tech corporations centered on fast development. From 2019 to 2021, the highest 100 tech corporations expanded workplace portfolios by 14 million sq. toes to accommodate workforce development and protectively lease house for future wants. Not too long ago, nonetheless, their focus has shifted.
“[T]ech corporations are taking a look at their house in an extremely strategic option to handle rising priorities comparable to price administration, portfolio optimization, elevated sustainability and balancing new office expectations and priorities.”
— Rob Kolar, Division President,
Know-how, Work Dynamics, JLL
“For various years, massive tech organizations have been dramatically increasing their portfolios,” mentioned Rob Kolar, Division President, Know-how, Work Dynamics, JLL. “Now, tech corporations are taking a look at their house in an extremely strategic option to handle rising priorities comparable to price administration, portfolio optimization, elevated sustainability, and balancing new office expectations and priorities.”
To behave on these new priorities, tech organizations are in search of to steadiness flexibility with the advantages of in-office collaboration; optimizing portfolios to cut back working prices; and creating workplace areas which might be environment friendly, enhanced and sustainable, in addition to figuring out how they measure success.
A Hybrid Coverage That Works For Everybody
Though many tech organizations have been early proponents of distant work, they now discover extra worth in hybrid work fashions. For tech firm staff, collaboration, tradition, and social connection are crucial drivers for in search of time within the workplace.
Globally, 79% of JLL tech sector shoppers encourage staff to work from the workplace no less than a number of the time, in keeping with JLL Analysis. In North America, 62% encourage staff to work from the workplace a number of the time.
“Corporations are working to strike the correct steadiness of hybrid to take full benefit of the advantages of in-person work — from crew collaboration and enabling firm tradition to rising worker retention and higher coaching,” mentioned Kari Beets, Senior Supervisor, Know-how Trade Lead, Industries and Work Dynamics Analysis, JLL. “Nevertheless, our analysis exhibits there isn’t a one-size-fits-all strategy.”
Some tech corporations nonetheless see remote-first or employee-choice office methods as a option to compete for prime expertise anyplace — viewing it as a recruiting benefit. Many job candidates nonetheless present a desire for flexibility, at the same time as corporations are choosing a return to the workplace.
Permitting staff to decide on which days they work from the workplace creates extra flexibility for them, however some tech corporations discover specifying in-office days for groups facilitates culture-building, cross-department collaboration, and encourages connections.
Optimizing Portfolios To Scale back Working Prices
Tech corporations taking a hybrid strategy have extra versatile insurance policies than in different industries. In keeping with the report, greater than half of surveyed tech corporations have reworked actual property portfolios to optimize for hybrid office methods.
“Tech corporations report that they’ve extra underutilized house than different industries, resulting in alternatives to re-evaluate portfolios,” mentioned Katy Redmond, Americas Co-Lead, Built-in Portfolio Companies & Tech Trade Lead, Markets Advisory, JLL. “After oversubscribing to house throughout a interval of fast development, tech corporations are rightsizing their actual property portfolios.”
Whereas portfolio discount was the development for tech shoppers over the past 24 months, tech leaders stay divided on actual property technique for the subsequent three to 5 years, with 40% saying their portfolio will develop. A few of this development has been pushed by corporations reducing an excessive amount of in 2023 and needing to develop house once more to accommodate new development and extra staff returning to the workplace. Adapting house for hybrid work and extra collaboration can even improve total footprint in comparison with having devoted desks.
“As wants for hybrid work grow to be clearer, a few of this house out there for sublease will likely be withdrawn to accommodate for greater workplace attendance,” Redmond added. “Corporations that shed house within the final 12 months need to develop once more and add areas for hybrid.”
Creating Areas That Are Environment friendly, Enhanced, Sustainable
Organizations centered on creating sustainable and tech-enabled areas are offering peak experiences for his or her staff. Although staff may return to denser areas, there are extra facilities, and the areas are infused with work-enabling know-how and designs.
Areas that prioritize sustainability are additionally a prime precedence. Behind lowering working prices, sustainability ranked because the second-highest precedence for know-how corporations. Pushing past certifications, tech leaders are innovating to make sure sustainability is part of their house to cut back their carbon footprint. Incorporating sustainability in actual property choices helps organizations obtain their objectives and may reduce prices by lowering power consumption.
Moreover, seamless know-how is important for a hybrid office. Tech that enables straightforward reservations for desks and assembly rooms facilitates a greater hybrid work expertise. Tech that enables staff and groups to know who’s within the workplace and when, can facilitate higher connections. Small, tech-focused assembly rooms for 2 to a few individuals are changing into extra frequent with up to date seating preparations that enable all individuals to take part absolutely — whether or not they’re in-person or digital.
“Workplaces designed with hybrid in thoughts usually have a steadiness of ‘we’ house, together with collaboration areas, break rooms for socializing and convention rooms, and ‘me’ house like devoted desks and enclosed workplaces.”
— Rob Kolar
“Workplaces designed with hybrid in thoughts usually have a steadiness of ‘we’ house, together with collaboration areas, break rooms for socializing and convention rooms, and ‘me’ house like devoted desks and enclosed workplaces,” mentioned Kolar.
Intentional design and entry in a shared workspace are usually not solely key to transitioning to a hybrid work mannequin, it’s additionally a possibility for elevated variety, fairness and inclusion. For instance, adjustable workstations with ergonomic seats and badge-operated lockers enable for personalization and lodging, whereas facilitating a way of inclusion and belonging for everybody within the workplace.
Targeted, quiet areas enable for heads-down particular person work. It’s crucial to offer a steadiness of areas for collaboration and focus within the workplace to encourage attendance from everybody — from particular person contributors to neurodiverse expertise.
Corporations using a hybrid work mannequin usually try for elevated productiveness; nonetheless, productiveness must be outlined by metrics most related to every tech employer, and generally taking a look at find out how to cut back inhibitors to productiveness might be extra useful.
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“Take into account the assorted metrics used pre-pandemic — from monetary efficiency of a enterprise unit to worker retention and satisfaction, and every part in between — there was nobody golden measure,” mentioned Beets. “We have to make use of a number of efficiency metrics when measuring success of hybrid work at this time. Despite the fact that workstyles have modified, orienting round enterprise objectives may help measure success.”
“Success doesn’t come in a single day, and changes to office methods are wanted, given the quickly altering panorama of hybrid insurance policies,” Kolar added. “Tech corporations might want to frequently adapt and regulate by monitoring utilization and gathering worker suggestions to iterate and enhance their house. You will need to hold a pulse on worker expertise and make continuous changes for organizations to get probably the most out of their house.”