More than two years into the pandemic, companies are once again returning to office life, but it’s not as we knew it before. A return to pre-pandemic working habits is unlikely if not completely unimaginable. The pandemic has put employee well-being front and center and made it the core focus of every employer. This is not only essential to win and retain talent, but it also enhances productivity, thereby improving the economic resilience of organizations. Consequently, this has affected not only the working habits within companies but is also impacting the whole asset class of office real estate. The world is making a permanent pivot toward the hybrid working model and, in the process, improve personal well-being and enhance work-life balance.
In a world where co-working and flexible workspaces are offering greater flexibility to employees to on where they work. The implications for office owners are clear. Landlords need to embrace the new world of work, updating office HQs as spaces to meet and collaborate, as well as building flex and coworking spaces into their portfolios. Technology adoption is another catalyst that is redefining the traditionally slow-moving real estate industry. Technological developments that anticipate general work trends have seen remarkable growth recently and consequently, proptech investments have picked up pace since 2020. A multitude of proptech start-ups is providing smart solutions to manage offices and workflows more efficiently.
Sensors and IoT devices play a major role in measuring occupancy to find the optimal person-to-desk ratio and making long-term workspace decisions. Recent innovations in office design include desk and phone booth sensors, magnetic field detection, as well as meeting room and door count sensors, which help companies better understand space utilization. Other innovations like occupancy tracking based on Wi-Fi usage are helping organizations operate their buildings, benchmark their portfolio, and take strategic real estate decisions in line with key business priorities including office space cost optimization and employee experience.
Operators are now increasingly focusing on expanding services to beyond tier 1 cities to cater to the rising demand of hybrid workspaces. Equally importantly, operators are realising that tech-solutions will be key to managing office assets and employee working practices. This will help manage and load balance office space in a hybrid working environment and also equalise hybrid working styles to overcome disadvantages for remote workers. Consequently, collaborative platforms are now helping organizations in these small cities link the office to employees wherever they may be and improve working conditions. Additionally, these platforms also work as aggregator booking platforms for hybrid workspaces and allow corporates to book office spaces basis their current needs. Employees can now leverage one central platform to book meeting rooms, have contactless access to meeting spaces, communicate easily with colleagues working remotely, and connect seamlessly to third-party systems such as caterings and local retail. A combination of such tech enabled collaborative solutions is helping woo employees back to the office. This ensures workplace continuity and allows corporates to design a long-term workspace management strategy for the workforce.
So, while the power dynamics have changed with customers and employees having a greater say in what office and working practices will look like, there is another important aspect to consider. The coming of age of proptech solutions are also helping office space providers transform long-term lease assets into vibrant and flexible spaces – redesigned to meet new office utilization demands. Their aim is to offer a service where asset owners and renter prospects are matched. Proptech is also helping office space providers redesign the office space aligned to customer needs and help manage the transition to a smart and hybrid office. Office space providers can consequently profit from hassle-free services, optimized rental yields and can envision additional revenue streams. Proptech is therefore an important element of “the future of work”. Being seen as part of this future trend today is also a key factor in enabling companies to stand out and differentiate themselves from competitors. And from a practical standpoint, it pays to employ a workforce that is less tied up in everyday tasks and more focused on growing the business.
