In an era of transformation, organizations face complex circumstances amid geopolitical and economic uncertainty. While companies often seek flexibility, adaptability is what’s truly crucial. This means being willing to pivot when needed, which requires cultivating resilience and innovation among leadership and the workforce.
Real estate plays a major role in this. Often the second-highest cost for a company after its people, real estate is core to business operations, influencing culture, collaboration, and well-being. Buildings have become critical enablers for success, especially in attracting and retaining talent.
Whether it’s a tech campus in Silicon Valley or a luxury development like Saadiyat Shores Abu Dhabi, the right physical space is key. A recent survey found that 50% of office workers have left their jobs since the pandemic began. Those working remotely three to four days a week are the most likely to leave, with 74% having changed jobs in the last two and a half years.
1. Financial resilience
Hybrid work has changed how offices are used. Evaluating a real estate portfolio and lease commitments can help identify operational inefficiencies and reduce costs. For many, this doesn’t mean less square footage but using space differently and improving its quality. Of 1,000 corporate real estate (CRE) decision-makers surveyed, 77% agreed that investing in quality is a greater priority than expanding their footprint.
Lease renegotiations and sale-and-leaseback strategies can increase portfolio flexibility. Short-term leases, often through co-working providers, can also provide the agility to withstand economic shocks.
Energy bills are another significant issue. Combining data with built-environment knowledge can reduce unnecessary energy use. For instance, NOME Capital Partners cut energy consumption by 45% in a multi-tenanted building by using AI to run its HVAC systems more efficiently. Research shows 46% of companies plan to expedite investment in carbon-efficient facilities over the next three years.
2. Technological resilience
The pandemic highlighted how fragile business continuity can be if technology fails. Establishing good metrics and embedding technology to measure building data are vital for dynamic decision-making. Yet, only 13% of organizations currently use real-time analytics for business decisions. However, 56% of companies plan to adopt technology for predictive facility management to improve asset performance.
Adopting these technologies can yield significant benefits. A Forrester Consulting study found that one intelligence-driven facilities management platform delivered a 238% ROI. As space use becomes more dynamic, companies are using data and AI to reduce costs, optimize portfolios, and enable remote work. For example:
- Workforce technologies help companies enable employees rather than just manage them.
- Workplace technologies help create healthy, engaging, and automated environments.
- Portfolio technologies use new data sources to design and optimize workplaces.
Without sustained investment, companies will struggle to achieve performance and resilience goals. CRE leaders must increase their investment in intelligent technology by 2025.
3. Workforce resilience
There is no going back to the old way of working. Research shows 60% of office workers want a hybrid schedule, and 55% already have one. Companies need strategies to retain employees while keeping them happy and productive. According to JLL research, quality of life is now the number one employee priority, followed by health and well-being. In fact, 59% of employees expect to work for a company that supports their health.
By creating a supportive environment, people can better adapt to adversity and maintain high performance. Enhancing workforce resilience is the top strategic priority for the real estate function.
In short, business resilience depends on a resilient workforce, robust infrastructure, and solid technology — a fusion of people, place, and technology. It also means successfully navigating new working patterns against a backdrop of constant change.
Building a diversified, flexible portfolio enables organizations to future-proof their real estate and respond to disruptions. The imperative is to transform buildings to better support resilience so they can handle whatever comes their way.
