Top trends in commercial real estate for 2022

AUSTRALIA, 7 February 2022 – Workforce and consumer preferences are changing the commercial real estate industry by driving employers to invest in flexibility, technology, and sustainability, according to a new report from JLL.

The 7th edition of JLL’s Top 10 Global Commercial Real Estate Trends report identifies the major trends shaping real estate that are set to influence decisions throughout 2022.

The report identified the top 10 trends in commercial real estate this year as:

• Hybrid work
• A flexible future
• Thriving workforce
• Regenerative workplaces
• Workplace equality
• Technology intelligence
• Dynamic deployment
• Return on sustainability
• Urban transformation
• Partnership ecosystems

JLL’s Managing Director Accounts, Ben Tindale said, “It’s apparent that the COVID-19 pandemic has been an accelerant of change and transformation for many organisations. Forward-thinking businesses are reinventing their real estate strategies in response to ever-changing business priorities, a challenging operating landscape and a volatile economic environment.”

The report outlines that flexibility will be an essential driver of agile and adaptive office portfolios. 63% of the workforce want to keep the possibility to alternate between different places of work in the future.

JLL’s Head of Tenant Representation - Australia, Michael Greene said, “Integrating a flex space strategy into your portfolio will increase organisational agility and support workforce mobility. Experimenting and piloting these strategies is key to determining the degree of flexibility required for your workforce.

“While flexible and hybrid working has been adopted through lockdowns, urban cores will be coming back with new energy and purpose, transforming into places of collaboration, innovation, creative energy, inclusiveness, and in-person social and business interaction,” said Mr Greene.

Technology intelligence is a key trend outlined in the report. Specifically, businesses are implored to harness big data to drive real tangible insights and adapt quickly to changing business needs.

Mr Tindale said, “New work styles and the adoption of technology to share and collaborate became mainstream in 2020 and 2021, with increased importance placed on technology. Leveraging the transformative potential of big data for strategic planning and decision-making will significantly progress in 2022.”

Mr Greene said, “The pivot to distributed collaboration, remote work and cloud technology work platforms is well under way and will continue. This will see our offices become more tech-enabled to inspire employees and customers who occupy them and connect remote or hybrid workers seamlessly.”

The implementation of sustainability strategies is a trend here to stay. The adoption of Net Zero Carbon is expected to more than double between now and 2025, according to the report.

Mr Greene said, “Businesses are designing corporate real estate strategies to translate their environmental and social goals into deliverable actions and create value. 42% of occupiers today aspire to create places that are respectful of Earth’s resources and acting for the climate.

Mr Tindale said, “Translating sustainability targets into credible action plans will drive real impact from real estate. From the speed at which workplaces are changing to the prospect of further market disruption, 2022 is expected to be another year of transformation.”