Real estate decisions will have lasting impacts

The pandemic has tested organizational and workforce resilience, but we know that hybrid working is here to stay, which calls for the rejuvenation of the office. Our global research confirms that the hybrid model will have a lasting impact, with 72% of corporate real estate leaders believing the office will remain central to their organization's ecosystems. JLL has identified the different forces at work:

1. Hybrid fuels demand for flexible office space: Hybrid work adoption has increased demand for flexible office space and 43% of companies plan to accelerate investment in flexible workspace between now and 2025.

2. Outsourcing to become increasingly important: Real estate needs are becoming more sophisticated and complex. Organizations are not equipped to tackle the new challenges of the future of work alone and a majority of CRE decision-makers are planning to increase their level of outsourcing over the next three years.

3. Rethinking performance measurement: The time is ripe for a radical rethink of performance measurement in CRE. Identifying measures that cement the link between CRE strategy and organizational objectives has become an imperative as real estate’s performance and value comes under scrutiny like never before.

4. Technologies are crucial to enabling hybrid work: Navigating, implementing and managing this new hybrid world will depend on intelligent and enabling technology. Companies are accelerating their investment in technology to meet new challenges, although implementation remains at an early stage. 

Four Learnings from hybrid workers

JLL believes there is a window of opportunity between now and 2025 for decision-makers to bring their action plans to life and to meet the expectations of diverse stakeholders such as employees, executive leaders, shareholders and local communities.