We are seeing a shift in the work culture. It appears the work from anywhere model is gaining some lets. Employees do not appear to want to work from the office to the same degree they did.
In this video I discuss how many companies are trying to appears this desire. With it does have major impact on commercial real estate. Are we in for a office space apocalypse like we saw in retail?
▶️ 3Speak
Summary:
In this video, Task discusses the impact of the hybrid work situation on commercial real estate. He explains how the shift to remote work during the lockdowns due to COVID-19 has resulted in companies reconsidering the need for traditional office spaces. Task highlights the resistance some employees are showing towards returning to the office full-time and how companies are adopting a hybrid work model to accommodate this shift in mindset. He predicts a significant decrease in the demand for office spaces in the future, drawing parallels to the retail real estate sector's struggles. Task also speculates on the future technological advancements that may further facilitate remote work and collaboration, making geographic location less important.
Detailed Article:
Task discusses the evolving landscape of the workplace due to the hybrid work situation that has emerged as a result of the COVID-19 pandemic. He notes how companies initially adapted to remote work during lockdowns, but now some are pushing for a return to the traditional office setup. This has led to a conflict as many employees are unwilling to go back to the office full-time. The shift in employee preferences is causing companies to rethink their approach to office spaces, leading to the adoption of a hybrid model where employees can work from home part of the time.
Task emphasizes that this shift will have a profound impact on commercial real estate, as the demand for traditional office spaces is expected to decrease significantly. He illustrates this point by comparing the potential future office setup to real estate offices where agents share desk spaces rather than having dedicated offices. This shift towards a more flexible working environment means that companies will need less office space, resulting in reduced demand for commercial real estate.
Furthermore, Task highlights how companies reducing their office spaces, especially in major cities like London, could lead to excess space in the commercial real estate market. This reduction in demand may significantly impact pricing and the overall real estate market. Task speculates that this trend could potentially lead to an "office space apocalypse" similar to the retail apocalypse that has affected the retail real estate sector in recent years.
Task also discusses the role of technology in facilitating remote work and collaboration. He mentions companies like Facebook, Microsoft, Zoom, and Salesforce, speculating on the future technological advancements they might introduce to support the increasing number of remote workers. Task predicts that technological innovations will play a crucial role in reshaping the way people work, potentially making geographic location less relevant in the future.
In conclusion, Task underscores the significant implications of the hybrid work model on commercial real estate, predicting a major transformation in the office sector. He invites viewers to share their thoughts on the topic and expresses optimism about the future of remote work and technological advancements in facilitating collaboration across geographies.