April\’s Flex/24 Chicago and New York events connected customers and partners to discuss the importance of bringing people, places, and assets together when creating the future of work. The event was a massive success as attendees gained valuable guidance on successful operational approaches and the worktech innovations they can expect in the coming years.
The events focused on what occupier trends to look out for in 2024 and how they can properly navigate them.
Implementing return-to-office policies
Talent and employee experience have been top of mind since the pandemic, specifically conversations around returning to the office. Yet only roughly one-third of companies globally have an in-office policy. Of course, these numbers vary slightly depending on the industry. Eptura\’s data shows stricter in-office requirements for financial services, law firms, and insurance companies, whereas tech and creative companies are less likely to have mandates.
At the NY event, Omnicom\’s Chief Innovation Officer (CIO) Erin Lanuti shed light on their return-to-office (RTO) policy. Omnicom operates under a three-day RTO policy; a system they consistently monitor and measure. Initially, agencies were free to choose their own approach. However, a mandate was later introduced due to space constraints following a real estate re-stack.
In contrast, Aon does not have a centralized policy, with each unit setting its own expectations. The corporate real estate team at Aon maintains a flexible stance, regularly convening to discuss office arrangements.
The lesson: The more data an organization has, the more effectively they can craft a solution that works best for them.
Using data for portfolio optimization
At the events, attendees relayed their concerns about how technology has evolved from facilitating better hybrid-remote work to leveraging technology and data for portfolio optimization. Companies now focus on using worktech to better understand their portfolios and make data-driven decisions. For example, this data can determine the amount and types of space needed, ultimately leading to more efficient and effective decision-making processes.
Leveraging portfolio optimization can lead to improved space utilization. A recent 2023 survey revealed that fewer than one-third of companies have sensors to track workplace attendance and usage. We expect this gap to close as more companies recognize the importance of worktech\’s capabilities.
Meeting sustainability targets
During Flex/24, we also highlighted the significance of sustainability efforts. At our New York event, we mainly focused on Local Law 97, which is seen as the most ambitious municipal program globally for reducing building carbon emissions. JLL shared they are actively engaged in understanding the implications of this law for both occupiers and landlords, as well as the associated standards and fines agencies will be enforcing until 2040.
Globally, 72% of large corporate occupiers are committed to achieving carbon neutrality or lower emissions. However, there is a concern about the \”green space\” shortage due to New York\’s aging building stock and the impact of interest rates on development. By 2030, for every three square feet of leased space that expires, only one square foot of green space will be developed — giving pause among occupiers about the potential costs associated with meeting sustainability targets.
Additionally, we dove into sustainability and building automation upgrades, with McKesson as a strong example. For over 15 years, McKesson has been at the forefront of building automation upgrades locally. The company is establishing a baseline for all systems and implementing cybersecurity measures to mitigate risks. McKesson\’s dedicated reporting team is driving sustainability efforts to achieve a significant 50% reduction in carbon emissions by 2032.
Still, the path to carbon neutrality isn\’t without its challenges for McKesson or other enterprises, given the nature of their real estate portfolios — particularly with significant manufacturing operations — which is where Eptura\’s worktech can help.
Maximizing productivity and return on investment (ROI)
An architecture firm mentioned the importance of understanding why employees come into the office and how it contributes to business productivity. They emphasized knowing the average number of people present daily and the criticality of lead time for communication. Leveraging corporate communications to distribute messages to local teams can help keep everyone on the same page. The firm also noted how regional leaders hold significant influence, especially when explaining the \”why\” behind their decisions.
With employees settling into an average 2-3 days a week office policy, attendees at both events expressed worry about employee productivity. During the lockdown, there was a surprising peak in productivity despite challenging circumstances and remote work. However, productivity has since eroded. In a survey, over 86% of occupiers listed \”maximizing productivity\” as a primary matter. ROI is closely tied to the efficiency of spaces and reducing operational costs, especially in the current global economic climate. Businesses seek ways to optimize their spaces and ensure they are cost-effective and conducive to productivity.
Occupier trends to watch for in 2024
In summary, Flex/24 found the occupier trends to watch for in 2024 revolve around business productivity, employee experience, technology, sustainability, portfolio optimization, and ROI. Companies strive to build work environments that foster productivity, leverage technology for data-driven decision-making, meet sustainability commitments, optimize portfolio utilization, and maximize ROI. By staying informed and adapting to these emerging trends, companies can successfully navigate the evolving workplace landscape.