THE WORKPLACE OF THE FUTURE

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Solomon Hubbard
5 years ago
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1 THE WORKPLACE OF THE FUTURE July 2018 CHANGING REAL ESTATE NEEDS 1

2 KEY INSIGHTS Further insights available at: cbre.co.uk/research-and-reports and cbre.co.uk/workplace-emea 2

PERMANENT DISRUPTION AND IMPLICATIONS TODAY S RIGID BECOMES TOMORROW S FLUID. 2040 WILL BE AN AGE OF PERMANENT CHANGE, WITHOUT THE FRICTION.

3 PERMANENT DISRUPTION AND IMPLICATIONS TODAY S RIGID BECOMES TOMORROW S FLUID WILL BE AN AGE OF PERMANENT CHANGE, WITHOUT THE FRICTION. Talent, buildings, services, goods will be available on demand. Open attitude towards sharing, even among competitors Fixed locations are luxury reward points as are home offices, right down to brand, lighting etc. Flexible, modular, adaptable buildings WHAT DO YOU NEED? Shorter and more flexible leases 3

4 PERMANENT DISRUPTION AND IMPLICATIONS Place matters more, not less Location decisions driven by quality and authenticity of experience Space needs to convey brand, culture and belonging, everywhere Locational convergenc e reflecting more diffuse footprint Incheon, South Korea Smart buildings, places and cities Companies reinvented as data houses Balance high-quality workplace experience with tech-enabled working platforms All leases will be green leases; more transparent accreditation; urban farms TODAY S RIGID BECOMES TOMORROW S FLUID WILL BE AN AGE OF PERMANENT CHANGE, WITHOUT THE FRICTION. 4 Source: Research, 2018

5 WHAT S OCCUPYING THE OCCUPIER? Technology disruption 33% 42% Real estate cost/availability 85% 91% Economic uncertainty 64% 41% Location convenience/amenity 58% 82% 0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 98% of firms do not expect Brexit to of have a significant impact on their employment levels 70% of firms have no contingency plan to relocate business elsewhere in Europe 95% firms do not expect Brexit to have a significant impact on their profitability levels 5 Source: Research, 2018

6 LONDON LANDSCAPE 6 stevekeiretsu

ONE SIZE DOESN T FIT ALL APPETITE FOR DIFFERENT TYPES OF FLEXIBLE SPACE NO CHANGE

Co-working space 33% 20% 15% 36% 16% 28% 29% 44% 16% BUSINESS INCUBATOR 14% OR

55% CO-WORKING SPACE 50% SERVICED / FURNISHED OFFICES 92% see productive and

7 ONE SIZE DOESN T FIT ALL APPETITE FOR DIFFERENT TYPES OF FLEXIBLE SPACE NO CHANGE CONTRACT EXPAND 100% 80% 30% 11% 60% 40% 20% 0% 50% 19% Office 6% 64% Flexible/ Co-working space 33% 20% 15% 36% 16% 28% 29% 44% 16% BUSINESS INCUBATOR 14% OR ACCELERATOR Retail Data centres Industrial and logistics 40% INNOVATION CENTER 55% CO-WORKING SPACE 50% SERVICED / FURNISHED OFFICES 92% see productive and flexible workspaces as pre-requisites to achieving core CRE goals. 7 Source: The Instant Group

8 DIGITISED TALENT DATA MAY BE THE NEW OIL, BUT TALENT IS THE TANKER.. More than 50% of employees are contingent workers; many job descriptions no longer specify a location Technology enables remote working to the extreme, including widespread use of holograms and avatars While technology is pervasive, people remain critical to business. BABY BOOMERS Brokers, Specialist MILENIALS & BEYOND Consultants, Generalist 2018 CONFIDENTIAL & PROPRIETARY 8 PORTFOLIO 2040

9 NEW SKILLS REQUIRED Data scientists 47% Digital transformation officers 46% User experience leads 38% Source: Research, Source: Research, 2018

BUSINESSES CARE ABOUT SPACE EFFICIENCY 47% workplace & space efficiency programs for portfolio flexibility INCREASED AGILITY 10 year facility life cycle upgrade technology every 2-3 years.

10 BUSINESSES CARE ABOUT SPACE EFFICIENCY 47% workplace & space efficiency programs for portfolio flexibility INCREASED AGILITY 10 year facility life cycle upgrade technology every 2-3 years. EFFECTIVE COLLABORATION 69% better collaboration a main driver of their workplace strategies. WELLNESS PROGRAMMES 80% have a wellness programme or plan to introduce one. TALENT MANAGEMENT 51% workplace as a leaver to attract & retain talent differentiator from competitors. WELL BUILDINGS 92% have preference for wellnesscapable buildings. 10 Source: Research, 2018

EMPLOYEES CARE ABOUT COMPANY CULTURE 47% company culture extremely important when selecting an employer WORK FLEXIBILITY 38% more engaged when organisations provide worklife support.

11 EMPLOYEES CARE ABOUT COMPANY CULTURE 47% company culture extremely important when selecting an employer WORK FLEXIBILITY 38% more engaged when organisations provide worklife support. EMPLOYEE WELLBEING 69% of millennials agree that wellness facilities are influential when taking a new job. EASE OF WORK 44% the latest technology to enable them to effectively do their job 11 Source: Research, 2018

12 ADJUSTING NEEDS Faced with the option of two similar buildings we would always choose one with a flexible offer Global Real Estate Director, Professional Services Occupier 3 year flexi-lease / Semi-serviced Concierge / Bike storage / Gym & Leisure Facilities Roof terrace / Event Space /Bar / Restaurant 5 to 7 year conventional floors Shared food hall / Conference auditorium Co-working / Serviced offices Incubator / Accelerator space Workplace is much more than demised office space British Land 12

DECODING EXPERIENCE PHYSICAL ENVIRONMENT Everything an employee needs to work with

wellbeing through nutrition, amenities and social environments EASE OF WORK Eliminate

CULTURE OF WORTH Develop culture through which organisation signals to employees that

strengthen fluid connections across the company COMMUNITY PERSONAL AND PROFESSIONAL

13 DECODING EXPERIENCE PHYSICAL ENVIRONMENT Everything an employee needs to work with ease, comfort and expediency ENVIRONMENTS WELLNESS Promote and facilitate health and wellbeing through nutrition, amenities and social environments EASE OF WORK Eliminate (or streamline) burden of administrative and trivial tasks AMENITIES WORK PROCESS A CULTURE OF WORTH Develop culture through which organisation signals to employees that they are valued and the work they do is important COMMUNITY INTERACTION Create and strengthen fluid connections across the company COMMUNITY PERSONAL AND PROFESSIONAL GROWTH Opportunities for continuous learning, internal networking, and awareness of career opportunities 13

14 SMART FEATURES 14

15 SMART FEATURES 15

16 Smart buildings Disruptio n REAL ESTATE COSTS TALENT WORKPLACE OF THE FUTURE PLANNING FOR UNCERTAINTY Peer review TECHNOLOGY Generational requirements FLEXIBILITY Space modelling Flex planning WELLNESS - ROI Redefining space needs

17 INFLUENCING THE TRADITIONALISTS CHANGE-MAKING HAPPENS WHEN PEOPLE FALL IN LOVE WITH A DIFFERENT VERSION OF THE FUTURE SETH GODIN 17

18 THANKYOU

JLL 10 Trends for CRE 2017

JLL 10 Trends for CRE 2017 Volatility Agility Optimisation Smart growth Open innovation Human experience Human cloud Intelligent automation Algorithmic business Better tomorrow Geo-political & macro economic