How data can empower your hybrid real estate strategy
The past two years have seen companies map out return-to-office plans, space expansion or reduction plans, only to retract them because of pandemic uncertainties. Rather than risk making the wrong decisions, many firms have been caught in analysis paralysis, waiting to see how things will continue to play out before finalizing major real estate decisions.
However, 2022 is the year when the rubber hits the road, and companies that wait risk getting left behind by competitors. Early year surveys of business leaders show that a majority expect global economic growth to improve in 2022 and expect to grow their workforce this year. Achieving business growth and winning the war for talent means that there will be significant onboarding of new staff and a need to have concrete plans on how to engage both old and new staff, or else risk losing them amidst The Great Resignation. There is an opportunity here for real estate to play a significant role in achieving these goals, but we argue that in order to maximize the utility of your real estate portfolio, decision making must be underpinned by a robust data strategy that considers more agile and dynamic data.
Using the right data to deliver actual insight
Pre-pandemic, real estate decisions were made using older, more static data sets like fixed head count, desk count, expected annual head count growth etc. However, in order to gain a clearer picture as to the future quantum and location of space needed in a post-pandemic environment with constantly changing conditions, occupiers require real-time data like real-time head count and real-time utilisation. Implementing a hybrid work strategy requires even more robust data in order to determine the future form and function of the office, including a regular pulse on how staff wish to engage with the office moving forward, work patterns, activity distribution, and the remote readiness of space and more.
Without the right data strategy, occupiers will resort to making reactionary rather than strategic decisions, missing out on potential cost savings as well as the wider business impacts of their decisions. The right data strategy enables occupiers to make decisions swiftly and with confidence, enhancing their speed-to-market. At Knight Frank, our Global Portfolio Solutions team helps occupiers identify and aggregate the right data points, overlaying it with industry benchmarks, embedding data along every step to inform the decision-making process.
What should occupiers focus on next?
The data points occupiers need will continue to evolve, and we see new trends constantly emerging. Currently, occupiers are increasingly looking for metrics to support their sustainability goals as well as workplace wellbeing. With the increase of smart building technology, more data is becoming more available than ever, and as the way we use the office changes, the metrics we use to measure utility and productivity will also change.
While data continuously evolves, it’s key to adopt an open mind and a curious mindset to be able to adapt. The important starting point, however, is for occupiers to have a clearly defined data strategy and data governance framework about how to maintain and collect data on a real time basis to allow CRE leaders to become more integrated, more dynamic, and more forward looking in how to support the end users of their real estate.