The office: Elevated

The workplace has reached an inflection point. With the rollout of hybrid policies and the technology to support them, building owners understand that today’s tenants have the upper hand regarding how —and when—their office works for them.

In this new world, employees want the convenience and flexibility they can get from working at home yet crave the collaboration and sense of community that comes with the traditional office space.

Employees hold an unprecedented amount of power, and building owners and investors are embracing the changing needs of tenants and the idea that their preferences will fuel the new definition of an office building. Now, the office must be a destination and an experience—a reason to leave the comfort of home.

Asset, portfolio and property managers must incorporate hospitality services, amenities, sustainability and seamless tech experiences into their properties to adapt to changes in tenant demand and lure workers into the office.

1. Design and offer cross-functional, flexible workspaces that evolve with your tenants

2. Activate common areas for tenant experiences that entice and engage3. Invest in intelligent technology that provides secure, frictionless access and streamlines operations

3. Invest in intelligent technology that provides secure, frictionless access and streamlines operations

As tenants call for increased flexibility to meet the demand of dispersed teams and hybrid environments, flexible space can help make an asset more competitive in the market. Tenants are seeking formats that offer dynamic, turnkey, and fully reconfigurable spaces that add value for tenants.

Pandemic-related uncertainty, changes in employee preferences and tenants’ increased need for agility are driving a surge in interest for flexible space options. JLL’s 2021 Global Flex Space Report reveals that 41% of tenants expect to increase their use of flex space as part of a post-pandemic work strategy.

Right now, most offices remain largely traditional, yet 60% of corporate clients plan on having flexible space as a component of their portfolio moving forward. In fact, JLL predicts that 30% of all office space to be flexible in some form by 2030.

The sweet spot

Owners and investors are incorporating flexibility and hospitality services into their portfolios to adapt to changes in occupier demand. But it’s not just tenants that benefit. Integrating flexible space into buildings drives foot traffic, incubates leasing prospects, and expands the amenities available to tenants.

Flex can also act as a shock absorber for future tenant needs, allowing for overflow when clients are expanding, contracting, or simply reevaluating what office space means to them. Adding flex to your asset strategy can be advantageous in that it enables you to create environments that can adapt and morph to changing occupier needs, no matter what stage of the business lifecycle they’re in.

Flex space solutions are an integral part of adaptive office portfolios. With the flex office space market poised for more rapid growth, innovative new deal structures are being introduced that mitigate risk, maximize return potential and confer greater control of space and customer relationships to landlords.

To attract tenants, property managers need to take a cue from the hospitality industry’s focus on how amenities can inspire meaningful relationships between people and places. Zeroing in on concierge-style experiences and superior client services improves tenant retention and acquisition efforts.

Making the office a desired destination was crucial even before the pandemic upended the way employees and tenants interact with the office.

Evolving employee attitudes and expectations mean the definition of amenities is changing. It’s not enough to provide tenant lounges, rooftop green spaces, and state-of-the-art gyms. Now, tenants and their employees expect programming, pop-ups, interactive exhibits, and community events that foster a cohesive culture of belonging.

Tenants now demand “space as a service,” an amenity- and experience-rich approach to workplaces. By focusing on the tenant experience and offering superior client services, property managers improve tenant retention and acquisition efforts.

73%

of the workforce aspire to new ‘human’ places that promote a healthy lifestyle, safety and well-being.

By creating engaging experiences in your asset that workers can’t access at home, employees feel like the office is worthy of their commute, time and energy.

Chicago’s Old Post Office is a prime example of how the largest adaptive reuse project in the country takes the tenant experience to the next level with sleek and spacious lounges, ample green space and a rooftop oasis. But that’s just one part of the equation. Now, landlords must consider solutions that enhance and simplify tenants’ lives.

To ease employee return to work, a growing number of office managers are using mobile apps that connect office tenants to maintenance and logistics systems, community-building programs and security features. These apps provide everything from room bookings to individualized temperature and lighting controls to maintenance and service requests.

Listen to this 12-minute Building Places podcast to learn more about which amenities employees desire, why they’re practical and how your building can benefit by reimagining the space.

Experience management (XM) drives Net Operating Income (NOI) and leasing by creating a captivating approach that gets the most out of your amenity space. JLL’s XM experts transform spaces into activated environments where tenants can relax, re-energize, brainstorm, or break their daily routines.

As the workplace is reimagined to facilitate hybrid workforces, the design and function of the office—and the properties they are in—will need to adapt, with technology playing a core role.

Offices will have to support a greater range of hybrid and work-from-anywhere models requiring robust digital connectivity and infrastructure with the capacity to adjust to new technologies, from IoT connectivity to 5G.

Technology helps asset managers transform how they acquire, manage and operate space. A successful property technology (proptech) ecosystem requires a comprehensive platform for property management, delivers services critical to asset performance, and provides intelligent insights to improve key performance metrics.