To Move or Not To Move: Rethinking Office Decisions in the Hybrid Era

In today’s corporate landscape, the decision to move offices is no longer solely about square footage and perceived value. With the widespread adoption of hybrid work models, companies are reevaluating their office spaces based on factors like usability, accessibility, and employee preferences. The trigger point for many organizations lies in understanding how their office spaces are being utilized and whether they are optimized to support evolving work dynamics.

In the U.S. office market, the start of 2024 was a bit of a mixed bag. While there were positive signs like better economic conditions and increased demand from occupiers, there’s still a problem with major players cutting back on office space. But here’s the twist: despite this downsizing trend, there’s a silver lining. We’re witnessing a boom in conversion and redevelopment projects, which are picking up speed faster than ever before (JLL, US Office Outlook – Q1 2024).

There are a few reasons why that might be happening – with more companies embracing remote and hybrid work setups, there’s suddenly a surplus of empty office space. So, developers are getting creative and finding new ways to breathe life into these spaces. Think repurposing offices into trendy mixed-use areas or revamping old buildings for modern needs. 

Plus, there’s a big push for sustainability these days, and renovating existing structures is often a greener choice than starting from scratch. Sustainability plays a crucial role in contemporary corporate real estate decisions, particularly concerning office moves or renovations. 

Companies are increasingly prioritizing environmentally responsible practices to minimize their ecological footprint and uphold corporate social responsibility standards. Integrating sustainable principles into office design and operations involves various strategies, such as utilizing energy-efficient lighting and HVAC systems, incorporating recycled materials into construction, implementing waste reduction and recycling programs, and promoting alternative transportation options for employees. 

And let’s not forget about those sweet government incentives and zoning perks that are giving developers an extra nudge in this direction. All in all, it’s a bustling time for transformation in the corporate real estate world!

The Impact of Hybrid Work Adoption

As hybrid work becomes the new norm, navigating corporate real estate decisions has become increasingly complex, accounting for programs around space optimization to the importance of data-driven decision-making, navigating the evolving workplace environment is a persistent challenge. 

Hybrid work adoption has reshaped the way companies approach office space utilization. As employees split their time between remote work and the office, companies are under pressure to demonstrate the ROI of their commercial real estate (CRE) footprint. This shift has prompted a reevaluation of traditional office setups and a focus on creating flexible, adaptable work environments.

A New Perspective on Office Moves:

Amid ongoing global economic and geopolitical challenges, 86% of CRE leaders globally are focused on reducing operating costs, highlighting the critical need for strategic approaches to office moves and CRE decisions (JLL, Global Occupier Trends to Watch in 2024). 

Here are some challenges organizations face when considering office moves or closures: 

1. Balancing Remote and In-Office Work: Companies need to find the right balance between remote work and in-office collaboration to meet the needs and preferences of their workforce.
2. Maintaining Company Culture: With dispersed teams and remote work becoming more prevalent, maintaining a strong company culture and sense of belonging can be challenging.
3. Cost Considerations: Office moves or closures entail significant costs related to real estate, technology infrastructure, and employee relocation, which need to be carefully managed.
4. Communication and Engagement: Keeping employees informed and engaged during times of change, such as office moves or closures, requires effective communication strategies and transparent leadership.

Instead of viewing office moves as a binary decision, companies should be empowered to adopt a more evolved perspective. Office moves or closures offer a chance for companies to reassess their long-term business objectives, optimize their real estate portfolio, and streamline operations for greater efficiency and effectiveness.

The key questions then, should revolve around technology, data, and communication strategies that enhance the overall workplace experience.

Do You Have the Right Workplace Technology In Place?

In today’s digital age, investing in technology is paramount to enhancing office spaces and facilitating a seamless work experience. Mobile-first touchpoints and centralized resources empower employees to navigate the workplace effortlessly, whether they are in the office or working remotely. 

With over 80% of companies planning to increase their technology budgets, leveraging innovative solutions can create a more agile and responsive work environment that aligns with the needs of a hybrid workforce.

Establishing a robust digital infrastructure at a new office or upgrading an existing one can significantly enhance the ability to adapt to evolving needs at the physical footprint level. Investing in a great, not just good, system ensures future-proofing against changing requirements, whether opening a new office, shedding office space, or reconfiguring workspace operations. 

A flexible and scalable technology solution allows for agile and adaptive changes without disrupting ongoing workflows or processes for the workforce. By laying the groundwork for transformative change with a forward-thinking digital infrastructure, companies can navigate transitions seamlessly and optimize the employee experience for long-term success.

Real Problems, Real Results

During the high-stakes relocation of thousands of employees to new headquarters, a global pharmaceutical company was able to leverage the Modo Workplace app to ensure a smooth transition, lean-in to transparent communications, and disseminate information throughout the entire process. 

Here’s how on-demand features made this happen:

1. Help Desk: Integrated support for employees’ relocation queries ensured a responsive environment.
   • For example, employees can use the Help Desk module to inquire about moving logistics, such as packing guidelines or transportation arrangements, and receive timely assistance from dedicated support staff, minimizing stress and confusion during the relocation process.
2. Transit Hub: Providing transit info, the app ensured employees’ timely arrival at the new HQ.
   • For instance, the Transit Hub module can offer real-time updates on public transportation schedules and routes, helping employees plan their commute to the new office location efficiently and ensuring punctuality on their first day at the new headquarters. Even more, if you have limited space, a parking reservation system can help employees navigate large parking structures to their dedicated spot.
3. Desk Bookings: Easy desk and meeting space bookings optimized workspace use and preferences.
   • By utilizing the Desk Bookings module, employees can reserve desks and meeting rooms in advance through a user-friendly interface, ensuring that workspace resources are effectively utilized and accommodating individual preferences for collaborative or focused work environments during the office move transition.
4. Mobile ID: Streamlined access control allowed secure entry via employees’ mobile devices.
   • With digital identification, employees can securely access the new office premises using their smartphones, eliminating the need for physical access cards or keys and providing a seamless entry experience for all employees during the relocation period. It’s fast, easy, helps with data input, and eliminates plastic waste!
5. Office Maps: Detailed maps helped employees navigate departments, facilities, and amenities.
   • With live maps, employees can access interactive maps of the new office layout, highlighting key areas such as departments, restrooms, and common areas, facilitating easy navigation and familiarization with the new workspace environment. Value-added features include booking desks or meeting rooms straight from a map without having to go through additional steps.
6. Wayfinding: Indoor navigation guided employees seamlessly through the new office space.
   • Utilizing the Wayfinding module, employees can receive step-by-step directions to navigate the office layout, including recommended routes and points of interest, ensuring a smooth transition and minimizing confusion during the relocation process. This is extremely helpful when traveling across, through and to a new building, workstation, meeting room etc. 
7. Perks Section: Exploring company benefits enhanced the overall workplace experience.
   • With a Perks module, employees can discover and learn about various on-site amenities or services offered by the company at the new office location, such as wellness programs, recreational facilities, or employee discounts, enhancing their overall workplace experience and fostering employee satisfaction. What’s the point in having a meditation room if no one knows it’s there?!
8. Events Calendar: Informed about engagements, employees fostered community and collaboration.
   • Through the Events Calendar module, employees can stay updated on upcoming on-site and virtual events, such as team meetings, training sessions, or social gatherings, promoting community engagement and collaboration among colleagues during the office move transition. Supporting and promoting affinity and interest groups only deepens an employees emotional bond to the company, resulting in higher retention rates.
9. Food Ordering: Integrated food ordering ensured convenient access to onsite dining options.
   • By leveraging a Food Ordering module, employees can easily browse menus and place orders for meals and snacks from onsite restaurants or cafeterias, facilitating convenient access to refreshments and promoting employee well-being during the relocation period. Even better, think of the added convenience of ordering an afternoon tea on the way to a meeting and having it ready when you pass by the cafe kiosk.
10. IT Support: Accessible IT assistance resolved technical issues swiftly, ensuring workflow continuity.
    • With an IT Support module, employees can quickly report and resolve technical issues related to their devices or software, receiving timely assistance from IT support staff to minimize disruptions to their workflow and ensure productivity throughout the office move process. Being able to quickly log a ticket directly in an app saves the added steps of logging into a separate ticket tracking system and having to manual check for updates saves time, and tampers frustrations.

By harnessing the power of mobile, the pharmaceutical powerhouse effectively maintained alignment among operations teams and kept employees informed about the move, all while establishing the groundwork for a digital workplace experience at their new corporate headquarters.

Incorporating these configurations and features into your office move and long-term workplace strategy can significantly enhance the relocation process and contribute to the overall success of your organization. Deploying these configurations and features, can not only facilitate a smooth office move but also establish a foundation for a flexible and agile workplace environment that meets the evolving needs of your workforce.

Learn more about informed workplace planning for office move decisions.

Do You Have Access To Workplace Analytics For Data-Driven Decision-Making?

Access to actionable data is essential for making informed decisions about office moves and real estate plans. Workplace data and analytics provide operations teams with valuable insights into how their spaces are being used, helping to rebalance supply and demand. 

This becomes especially crucial when evaluating current or future real estate plans such as making an office move or closing buildings due to cost or overhead. Having a holistic picture is critical in these decisions. Digital IDs can play a key role by tracking badge swipes and access data to understand resources coming in and out each day. 

Automation can streamline processes such as check-in and check-out of workstations and collaboration stations, while integrations with occupancy sensors provide additional insights. According to recent studies, 72% of companies are now using utilization data for planning purposes, indicating the growing importance of data-driven decision-making in office management. Additionally, organizations have increased collaboration space by 44% and decreased private space by 19% since 2021, reflecting the evolving needs of modern workplaces. 

By leveraging these data-driven insights, companies can optimize their office layouts, allocate resources efficiently, and support employees in making informed decisions regarding hybrid work arrangements. This ensures that office moves are not only cost-effective but also tailored to meet the evolving needs of their workforce.

What Do Workplace Analytics Even Look Like?

Taking a closer look at what workplace analytics actually means is crucial for companies evaluating their corporate real estate needs. Before or after making an office move, it’s essential to plot the data points that should be tracked and then invest in technology and IoT solutions that can deliver that data effectively. 

However, simply collecting data isn’t enough. 

Proper teams must be in place to interpret the data and paint a clear picture of what it means for the organization. In these early stages of workplace and office analytics, companies are still navigating the complexities of data collection and interpretation. 

While badge data and occupancy remain key metrics, it’s essential not to rely solely on these indicators. Usability and engagement are equally critical KPIs, with each company having its own set of data points to measure them effectively. Beyond peak and low occupancy days, considering metrics such as recency and frequency of desk usage can provide valuable insights into workspace utilization patterns. 

However, understanding how to interpret this data is paramount. For instance, an underused space may still provide significant value if it supports a team with exceptional performance, outweighing the cost of vacancy. 

Sample workplace analytics data points you may be interested in tracking:

1. Occupancy Rates: How many desks or workspaces are being utilized at any given time to optimize space allocation.
2. Utilization Rates: How often desks, meeting rooms, and common areas are being used to identify areas for improvement or optimization.
3. Employee Movement: How employees move throughout the office space to understand traffic flow and identify bottlenecks.
4. Meeting Room Usage: The frequency and duration of meetings to optimize room allocation and scheduling.
5. Desk Reservations: Understand employee preferences and usage patterns.
6. Remote Work Trends: The percentage of employees working remotely, so you can adapt office space accordingly.
7. Space Efficiency: The ratio of usable space to total space to ensure efficient use of real estate assets.
8. Cost Allocation: A breakdown of costs associated with office space, utilities, and amenities to optimize budget allocation and identify cost-saving opportunities.
9. Amenities Utilization: The usage of amenities such as cafeterias, fitness centers, or relaxation areas to optimize their design and offerings.
10. Noise Levels: Measure ambient noise levels in various areas of the office to identify quiet zones or address noise-related productivity issues.

Ultimately, a nuanced understanding of workplace analytics allows companies to make informed decisions that align with their unique objectives and priorities.

Are You Capable Of Delivering Effective Workplace Communication Strategies?

Clear and transparent communication is not just important; it’s essential for encouraging employee engagement and fostering a sense of community within the workplace.

In today’s mobile-first world, this means ensuring that communications are available anywhere, anytime, on the go, not just accessible via Slack or email. This becomes increasingly vital amidst or when planning for an office move, where transparency and over-communication are paramount to success. Research indicates that over 40% of workers cite poor communication as a factor reducing trust in leadership and their team, while 41% have contemplated a “quiet exit” but would reconsider if organizational engagement were enhanced. 

Value-added features for workplace technology, such as real-time alerts, on-site events, and the promotion of perks and amenities, can further enhance the office experience and strengthen employee connections. Prioritizing communication strategies that resonate with the workforce can create a compelling case for on-site collaboration and innovation. By focusing on effective communication, businesses can ensure that their office moves are met with enthusiasm and participation from employees, driving success in their workplace transitions.

Answering the Ultimate Corporate Real Estate Question

Ultimately, the decision to move or not to move boils down to how companies leverage their office spaces. It’s not just about the quantity of square footage but rather how effectively that space is utilized to support employee productivity, collaboration, and well-being. 

Perceptions of workplace experience technology are undergoing a significant shift, moving from being perceived as a nice-to-have amenity to becoming a value driver for businesses. As companies continue to refine their flexible working policies, having a clear and consolidated view of workplace utilization is increasingly crucial for effective portfolio management and strategic planning in the coming years. 

According to recent research, 91% of occupiers indicate they are willing to pay a premium for tech-enabled space. By leveraging advanced workplace technology solutions, organizations can gain valuable insights into how their spaces are being utilized, allowing them to optimize resource allocation, enhance employee productivity, and adapt to evolving work dynamics. In this rapidly evolving landscape, workplace experience technology is poised to play a pivotal role in shaping the future of work and driving organizational success.

By embracing technology, leveraging data insights, and implementing effective communication strategies, companies can create dynamic work environments that adapt to the changing needs of their workforce. So, when faced with the question of whether to move or not, remember that it’s not about the space itself, but rather how you use it to empower your employees and drive organizational success.

Need A Place To Start? Get the Office Moves Playbook here.