With many embracing the COVID-era flexibility and hybrid work schedule, it seems that return-to-work rates are unlikely to fully recover to pre-COVID norms. Approximately 87% of remote workers offered some form of remote work arrangement opt to take it; spending an average of three days out of the workweek working from home.
Many experts believe that improved remote productivity tools and the widespread adoption of video conferencing have permanently championed this shift in the workplace, resulting in similar productivity rates across industries.
Despite these benefits, there are disadvantages for property owners. Understanding how to reimagine owned office space is the first step to leveraging this change for your benefit.
The Bottom Line
The traditional role of office properties has changed—and likely will not revert in the near future. Landlords and property owners must react in time and strategically to remain risk-averse and profitable during this time of transition.
Why It Matters
Understanding the reasons that led to this culture shift further informs the strategy of property owners with empty or underutilized office spaces; offering additional opportunities for them to come out on top.
Here Are the Details
1. Current Trends in Return-to-Work Rates Have Shifted
Historical Norms: Pre-COVID, office occupancy hovered around 90%. Today, averages struggle to surpass 50% in many markets during the average working day.
2. Technology Is (and Continues To Be) a Catalyst for Change
- Productivity Tools: Software advancements mean employers can track and enhance performance without physical oversight, making it easier for many workplaces to allow a hybrid work arrangement option.
- Video Conferencing: Reliable, easy-to-use platforms allow for effective collaboration, replacing the need for daily in-person meetings.
- Long-Term Implications: Since the pandemic era, businesses have realized they can save costs on office space without sacrificing productivity rates or employee morale.
3. Related Impacts on Commercial Real Estate Can’t Be Ignored
Vacancy Challenges: Empty office spaces are a financial drain for property owners. Demand is shifting to flexible work environments rather than traditional cubicles.
Positioning for the Future
The workplace of tomorrow will be more flexible, dynamic, and tech-enabled, and properties that respond to this change will stand to gain additional profit.
Looking to discuss your options?
Connect with RE/MAX Commercial Advisors Group today.
We’ll help you assess the current state and proposed value of your property as it stands, identifying new areas of opportunity for additional profit—both now and in the future.
