Navigating disruption and uncertainty are now standard in a world that continues to face economic and political challenges.

From concerns over the productivity of a hybrid workforce and how to gain an edge with artificial intelligence, to the ongoing conundrum of what to do with office buildings that are heading for obsolescence, investors and corporate occupiers have a lot on their minds.

Join us in diving into some of the biggest issues facing the commercial real estate industry in 2024.

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.

Commercial real estate investment is in the early stages of a significant reallocation of capital.

“Depending on location, it’s fair to say that diversification will take different forms," says Sean Coghlan, Global Head of Capital Markets. “And even for those sectors which are currently out of favor, we still see a place for global, diversified portfolios.”

For new strategies, Coghlan says deployment will be a hurdle, given varied degrees of barriers to entry, competition and crowding-in strategies. “That really reinforces the need for investors to act with agility and have real-time market connectivity.”

As a clearer picture emerges, investors’ existing holdings will need to be assessed, he adds.

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.