Adapting to the New Normal: How Corporate Real Estate is Evolving in a Post-Pandemic World
Home office and remote work have transformed our perception of offices and the workplace in general. Sustainability, mental health, and comfort are new elements that have become crucial in the new ways of working. With these changes, corporate real estate industry companies are facing new challenges to comply with their clients' needs.
Corporate Real Estate (CRE) has traditionally been viewed as a cost center, responsible for managing a company's physical assets, such as office buildings, warehouses, and retail spaces. However, in recent years, the role of CRE has evolved to encompass a more strategic focus on employee experience and remote work.
As the COVID-19 pandemic has forced many companies to shift to remote work, the role of CRE has become even more important. With employees working from home, companies are rethinking the purpose and use of their physical office spaces. This has led to a greater emphasis on employee experience and the need to create spaces that promote collaboration, innovation, and creativity.
CRE heads are increasingly reporting to human resources, rather than the usual finance or operations, reflecting how their jobs have become more human-centric. This shift is also driven by the need to attract and retain talent in a highly competitive job market. Companies are recognizing that the physical workspace can have a significant impact on employee satisfaction and productivity.
The variable work patterns and preferences of employees are also influencing the way CRE is managed.
With remote work becoming more common, companies are looking to downsize their office spaces or adopt flexible work arrangements, such as hot-desking or activity-based working. This requires a more agile approach to managing the physical workspace, as well as a greater emphasis on technology and digital connectivity.
In addition to managing the physical workspace, CRE is also responsible for creating a workplace culture that supports employee well-being and engagement. This includes providing access to amenities such as gyms, healthy food options, and relaxation areas. It also involves creating policies and programs that promote work-life balance, such as flexible work arrangements and wellness programs.
The role of Corporate Real Estate is evolving to focus more on the employee experience and the changing nature of work. With remote work becoming more common and employee preferences evolving, companies are recognizing the need to create a physical workspace that supports collaboration, innovation, and creativity, while also promoting employee well-being and engagement. As a result, CRE heads are increasingly reporting to human resources, reflecting how their jobs have become more human-centric.
