In episode 329, host Mike Petrusky speaks with Julie Whelan, SVP and Global Head of Occupier Thought Leadership at CBRE. Whelan is passionate about identifying market trends impacting the occupier in the office and industrial space. She’s also lead author of CBRE’s 2024 Americas Office Occupier Sentiment Survey which provides insights from 225 corporate real estate (CRE) executives. Their discussion details the report and what it reveals about office occupiers seeking to align their workspaces with hybrid work models while meeting business objectives. They also explore current and future portfolio strategies and the importance of technology and sustainability.
Agenda
- Importance of a people-centric workplace
- Results of the CBRE 2024 America’s Office Occupier Sentiment Survey
- Role of technology in the future of the workplace
- Insights on the changing dynamics of CRE
What you need to know: Workplace takeaways
Takeaway 1: The future of the workplace is people-centric and requires understanding how space is utilized
CRE professionals need to focus on understanding how employees use their workplace and what they require from it, which for some is a change from past practices.
Whelan explains: “Corporate real estate organizations used to be there to deliver the footprint that was needed to house the people and demand planning was pretty easy. But now people… are at the center of the workplace.”
That means organizations need to evolve and should strive to develop a working environment that aligns with their company culture and work norms.
Whalen identifies video conferencing and room booking are the top two technologies organizations are implementing, but she hopes they invest in becoming better at understanding how spaces are used.
“In the next five years we’re going to get much smarter about not how often people are coming in, but to be able to look at how spaces are being used and therefore to be able to better design them.”
Takeaway 2: The future of the office is not about full-time occupancy but about need-based presence
Whalen says most people agree there is a need for office presence, but that it does not have to be five days a week.
“Most organizations are really leaning into three days a week in the office,” but while many companies are in that category, others are leaning toward one or two days a week or four or five days a week, she explains. Whelan’s insight: “This is certainly not a one-size-fits-all environment,” and the frequency of office attendance should be defined by what makes sense for an individual company and its culture.
Reflecting on the current state of CRE, Whalen says there’s a shift in sentiment regarding contraction and expansion of office spaces. While contraction remains a consideration, she notes that an equal number of organizations also wish to expand.
Whalen’s conclusion: “To say that we feel like we’re at a turning point in the office market, I would say that all of those data points really point in that direction.”
Takeaway 3: Trust and purpose are key in shaping the future of work
The future of the office depends on being collectively trusted and having an understanding of overall purpose.
“People want to be treated like trustworthy adults. And they want to feel that they have trust with their organization by their organization explaining to them why the office is important and what needs to be accomplished in the office and why that will better for them as individuals and also the overall organization,” Whalen says.
She advises organizations to communicate with their employees to understand their needs and usage of the workplace.
“The most practical advice that I can give is that if we are really bought into having this people-centric workplace, then we need to talk to the people in order to get there.”
Workplace management insights
- The office continues to be a critical piece of organizational culture, but it’s not going to be in a full-time way.
- The future of the workplace will require a better understanding of how spaces are being used.
- Corporate real estate organizations need to take a more people-centric role than they have in the past.
There is a shift in sentiment from contraction to expansion in office space
Do a deep dive into more workplace insights by exploring all Workplace Innovator podcast episodes
