Future Scenarios for Corporate Real Estate
2025
Scenarios
Impacts
The Journey Forward
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The Scenario Planning Team
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vision of the future
Why did we do this?
Four Possible Scenarios of the Future
Back to 2019
1
> > > > >
Hub, spoke and satellite model continues
Sign Posts
Action Plan
SF Locations Seats Shared space Amenities
HQ Regional hubs Small offices Flex CapEx OpEx
WFH not accepted as a viable way to move forward Remote collaboration not sustainable in managing work Communication and collaboration tools not effective Employees don’t develop a voice in determining their work experience
Source talent as done in the past Move forward with traditional office plans Selectively implement WFH policies Use flexible workspace as a bridge Incrementally evolve tech platforms to support business
Low adoption of WFH and employees go back to office Workforce continues to be managed in global and regional centers Company portfolio strategy status quo Continued strides toward globalization and foreign expansion Technology (AI & automation) adoption continues at a steady pace
> > > >
The Office is Digital
2
The office is defined by a digital experience with varied space types supporting work Employee choice drives real estate strategy Majority of portfolio moves to variable, home or flexible workspace options. Technology becomes integrated with real estate and there is major adoption of new platforms Accelerated globalization and more offshore expansion
Data supports WFH increases productivity and mental health Remote-work option becomes competitive advantage for hiring Adoption of new technologies to improve remote-first work collaboration Sector leaders announce long-term remote work first strategies On-demand real estate solutions become more widely available
Begin sourcing talent from anywhere Develop employee choice program to guide real estate Pivot the portfolio to distributed, network model Enable full flexible workspace model as core portfolio Shift major investment to technology and new infrastructure
No office with flexible workspace meeting centers
Disruption is the New Normal
3
> > > > > > >
Location is irrelevant Our physical and digital lives are blended Employees have the agency to choose, when, where and how they work Companies attract talent from a global talent pool People move from company to company frequently Companies hire the best for short, intense initiatives Immersive Virtual Reality (VR) emulations replace most physical-proximity interactions
VR and digital experiences become commonplace Most talent, begins to relocate their living location based on lifestyle Organizations begin to meet employee demands for flexibility in when, where and how they work
Develop an organizational mission that aligns with talent you want to attract Evolve to an agile portfolio strategy focused on a network of locations Pilot and evolve sprint-oriented project models Develop employee centric amenity packages including space options Enable VR and Augmented Realty (AR) technology as core employee experience technologies
> > >
Adapting to Change
4
The gravitational center of the enterprise shifts toward distributed work Bifurcation in the labor market where highly technical employees have choice of where and how to work Company portfolio strategy adapts for alternative occupancy Technology continues to advance in order to facilitate more integrated workflow and interactive communication We see an increase in on/near shoring, but certain non-essential operations and manufacturing processes continue to take place overseas
Virtual work a must to attract top talent Segmentation by function, living situation and demographics inform WFH policies Activity-based-work environment critical for enabling innovation New technologies amplify remote collaboration effectiveness Need for dynamic, flexible workspace real estate solutions increase
Develop talent sourcing strategy to be occupation type dependent Gather information regarding key characteristics of your labor force Focus on increasing flexibility in operating models and real estate footprint New process and management techniques needed for remote labor force Strategic investments in technology to facilitate virtual office infrastructure
Integrated model with some hubs and satellites
Business & Real Estate Impacts
BUSINESS > Brand Expression > Business Continuity > Corporate Events > Management Style > Resiliency > Culture > Collaboration > Productivity
EMPLOYEES > Compensation > Employee Engagement > Quality of Life > Recruiting > Access to Talent > Retention > Career Development > Employee Amenities > Work-Life Balance > Family Dynamic > Health & Wellbeing
FINANCE > Operating Cost > Capital Expense
GEOGRAPHY > Urban > Suburban > Tertiary Locations > Commute
OPERATIONS > Data Security > Infrastructure > Technology Acceptance
REAL ESTATE > Number of Rooftops / SF > Portfolio Management > CRE Market Impact > Workplace > Location Quality > Flexible Space
Impacts to Traditional Real Estate Models
Each Path Represents a Change in the Relationship Between People and Workspace
We Are CRE Voyagers
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