In the current business climate, organisations are grappling with a multitude of challenges. Escalating costs, supply chain disruptions, labour shortages, and an energy crisis are just a few of the key global macro factors that businesses face. In light of these challenges, it’s clear that businesses must reassess their Corporate Real Estate (CRE) strategies and invest in solutions that foster continuous adaptation to these shifting market dynamics.
Embracing Dynamic Operations
The first step is to embrace dynamic operations. By implementing digital technologies, businesses can drive operational efficiency and secure a return on investment. For instance, a company might utilise AI to automate routine tasks, freeing up employees to focus on more strategic initiatives. This isn’t just about staying afloat; it’s about thriving amidst uncertainty. A striking 70% of CFOs recognise “implementing digital technologies to improve efficiency, effectiveness, and stakeholder experience” as their top priority.
Next, businesses must optimise with impact. This means balancing the risk of losing key talent against short-term cost and portfolio efficiencies. It’s a delicate balancing act, but one that’s crucial for long-term success. After all, half of office workers have left their jobs since the start of the pandemic, and a staggering 90% would consider moving jobs again in the next 12 months. Companies like Google, for example, have implemented flexible work policies to retain their talent pool.
Achieving Data Maturity
Data maturity is another critical factor. It’s not enough to collect data; businesses must leverage advanced forms of analysis to generate sophisticated performance insights and enable dynamic decision-making. Currently, only 13% of corporates are doing this on an ongoing or real-time basis. Companies like Amazon, for instance, use data analytics to understand customer behaviour and personalise their offerings.
Navigating the Hybrid Reality
The hybrid work model is no longer a trend; it’s a non-negotiable element of the workplace ecosystem. Aligning spaces, technology, and HR policies is imperative to operationalising these models. A significant 56% of corporates consider this a top priority between now and 2025. Companies like Twitter and Facebook have already announced permanent remote work options for their employees.
Climate resilience is another key area of focus. Businesses must maintain momentum on actions that support net zero ambitions and future-proof their operations. A compelling 74% of CRE leaders say they would pay a premium for leasing a green building. Companies like Apple are leading the way with their commitment to become 100% carbon neutral by 2030.
Connected communities are the future. Location decisions will gravitate towards places where people can socialise, shop, live, work, and eat. This shift is driven by changing workforce and consumer preferences, sustainability pressures, and the transformation of real estate by technology. For instance, Google’s planned community in the San Francisco Bay Area is designed to provide a mix of residential, retail, and community spaces.
Prioritising Holistic Wellbeing
Holistic wellbeing is no longer a luxury; it’s a necessity. Wellbeing initiatives need to be inclusive, holistic, and personalised to enhance workforce resilience and performance. This is particularly important given that 38% of employees are stressed because of their workload. Companies like Nike offer comprehensive wellness programs that include mental health resources, fitness programs, and flexible work arrangements.
Responsible procurement is another area where businesses can make a significant impact. By taking ethical and sustainable considerations into account when sourcing services, supplies, and works, businesses can bring about positive and sustainable change. For instance, IKEA has committed to only use renewable and recycled materials in its products by 2030.
In this complex landscape, organisations need to form strategic alliances and partnerships to tackle new challenges and solve complex problems. A significant 79% of leading CRE functions anticipate more reliance on external partners. For example, pharmaceutical giants Pfizer and BioNTech partnered to develop a COVID-19 vaccine, demonstrating how strategic alliances can lead to profitable market cornering initiatives.
Fostering Innovation Clusters
Finally, businesses must prioritise markets with the strongest innovation and talent characteristics. A significant 39% of CRE leaders are reallocating footprint to facilitate access to talent pools. Tech hubs like Silicon Valley, London’s Tech City, and Bangalore’s Electronic City are prime examples of innovation clusters where businesses can tap into a rich pool of talent and creativity.
Navigating the corporate landscape in these uncertain times requires a multi-faceted approach. By embracing these strategies, businesses can not only survive but thrive amidst uncertainty. The future may be unpredictable, but with adaptability, resilience, and innovation, businesses can chart a course to success.