Amid ongoing disruption, industry experts examine what the future holds
Insight
5 big questions real estate is asking in 2024
1. Is hybrid really working?
Years into the great hybrid work experiment, many firms worry it just isn’t delivering the goods.
Boosting productivity is one of the top three reasons employers are encouraging people to work from the office, recent JLL research found. They feel it’s needed to maximize collaboration and innovation.
“Employers associate on-site work with major benefits such as social connection and cultural bonds,” says Flore Pradere, Global Work Dynamics Research Director. “They see it as a significant contributor to employee performance.”
But there are conflicting issues from an employee standpoint. Almost half the workforce believes they’re more productive at home.
“Office noise and lack of privacy are significant problems, discouraging many employees from returning,” says Pradere. “People say they simply can’t concentrate and it’s affecting their work.”
The answer, then, is that more work is needed to bring expectations closer together. A big part of it will be creating offices that deliver what’s needed for a hybrid workforce. Pradere suggests office use data and human-centred design are key to cracking the performance code.
5. Will investors become conversion converts?
While office vacancy rates hit an all-time high, and housing shortages abound, investors and landlords are questioning what to do with buildings past their prime. Converting these spaces into apartments, life-science labs, luxury hotels, data centres or even vertical farms are becoming increasingly attractive options.
“With many buildings now out of date – if not yet out of use – and others simply failing to generate suitable yields, conversions are increasingly on the cards,” says Walid Goudiard, Head of Project and Development Services, EMEA.
He adds that as more repurposing projects are finished, developers are gaining valuable experience. Financing is also becoming more readily available.
“The environmental and social benefits are now clear, while future financial rewards are boosting investor confidence in the emerging business case for adaptive reuse strategies,” says Goudiard.