Cushman & Wakefield’s new report highlights the high risk of obsolescence for office assets in Europe that don’t meet occupier demand or upcoming sustainability legislation.
Landlords are being urged to act now. The flight to quality trend is accelerating so those who reposition their portfolio to meet sustainability credentials and occupier’s expectations for greater flexibility, community and experience will be the ones who benefit.
“Cushman & Wakefield has formed a pan-European, multi-disciplinary team as part of a global response to the office sector’s need for rethinking, reimagination, repositioning and repurposing.”
In WiredScore’s most recent report, they spoke to 1,000 real estate decision makers across North America to determine what they, and their employees, are looking for in an office space in the next five years.
Since the pandemic, the implementation of smart technology has dramatically increased as expectations from the modern workforce have changed, and occupiers are therefore willing to spend more on leasing space.
Smart technology will continue to play a pivotal role in the office market and Landlords must adapt to attract and retain occupiers in this competitive landscape.
Based on 300,000 employee responses collected by Leesman and analysis compiled from 200 industry resources by Gartner, this report from HqO showcases how workplace experience has evolved over the past year, what trends to expect in 2023, and what action real estate and employee experience leaders need to take.
The office market is currently in a divide between prime and secondary office buildings that will continue to widen in 2023. Demand for the best buildings in attractive locations will support rent growth in top-tier office towers. By contrast, there will be a smaller pool of tenants interested in older office buildings. As hybrid working remains desired, building owners will continue to look for ways to optimize their portfolios.
“We’re going to continue to see technological advancements being used in the office that really helps provide this seamless experience between people who are working in the office and meeting with clients that are in other locations. It’s going to be technology that helps people work together wherever they are. It’s less about me space and it’s more about we space – that’s what we continue to hear. It’s less space for desks, it’s not as much about cafes, it’s really about those meeting rooms and the technology that helps people get work done in a collaborative way.” – CBRE’s Head of Office Research, Jessica Morin
Technology is rapidly evolving across the real estate sector, where the market for smart buildings has exponentially grown and is estimated to be worth in excess of US$100 billion by 2025.
Arcadis’ Intelligent Building Practice have published research which highlights the benefits of intelligent buildings across people, planet and profit. It is no longer a question of ‘how much does an intelligent building cost?’ but ‘how much can my company benefit by working in an intelligent building?
CBRE recently released their Flexible Office Trends in Life Sciences 2022 study, where they surveyed the Life Sciences practice group on their clients’ adoption of flexible office space and flexible lab space.
Results show that respondents think the biggest obstacles with adopting flexible office space are IT security, data privacy and cultural fit. The survey also shows that the use of flexible office space is expected to increase including findings such as
Traditionally, a commercial office fit out project would be categorised as either Cat A or Cat B. However, recently, in an attempt to adapt to ever more demanding occupier requirements, a new category has emerged, Cat A+. This new category combines all elements of a Cat A plus added features of a Cat B fitout. Cat A+ becomes what can be also referred to as ‘plug-and-play’ space, ready for occupiers with no delay.
React News reported on recently published research from RX London & Thirdway Group who looked into market performance of the early Cat A+ space available.
- Average Cat A+ unit size = 3.8k sq ft. The largest is 16k sq ft
- Compared to Cat A, Cat A+ net effective rent achieved is around 31% higher
- Marketing void periods typically halved in length with Cat A+ space
At a time when commercial occupancy rates across the country remain stubbornly low, the report delves into how Australian office worker expectations are changing in a digital-first, hybrid work environment and how this impacts their office attendance.
Next Flex | Technology for the next generation Australian office, which surveyed 1,000 office workers across the country, was launched by essensys, a leading global provider of software and technology for the commercial real estate industry, in partnership with Flexible Workspace Australia.
- 85% of survey respondents, especially workers under 41, want to work in a flexible workspace near their homes, at least as much as their primary offices
- 57% of Australian office workers say that their office is not equipped for a flexible, seamless, agile work experience
- More than 2 in 5 (41%) feel simple tasks take too long in the office due to the standard of their in-office technology
- More than 90% of Millennials and Generation Z employees experience a gap between the technology currently offered in their office and what’s needed to do their jobs effectively