Evolving metrics in a changing corporate real estate landscape

Abstract

In today’s world of the ‘hybrid office’, the role of the ‘office’ has changed. The focus has evolved from efficiency, individual space and support space to new considerations for group engagement and an engagement/hospitality focus. Solutions for both technology and collaboration spaces have shifted to be more inclusive of remote participants and considerations. Today’s metrics in corporate real estate (CRE) organisations need to realign to capture and monitor new drivers. Concurrently, companies are facing new headwinds with a vastly different business climate from that of the past few years. Federal rate hikes and inflation increases have raised concern for a potential recession and have created a financial environment where cash is king. Organisations are hyper-diligent for CapEx and OpEx spend. Finally, the war for talent is still a market driver, with the US at near historic lows with unemployment at 3.6 per cent in June 2023. This has created a huge focus for leadership with human capital — even with the tech industry layoffs in spring 2023. As CRE pivots to support their organisation’s objectives, metrics are evolving with new considerations. This paper explores areas of impact that could evolve out of this progression.