Corporate leaders will face many challenges in 2021. COVID-19 will leave lasting scars that will continue to drive variable industry performance across markets. In addition to managing COVID, companies must execute their 2021 strategic plans while preparing for the post-COVID future.
In this free webinar FrontierView’s Chief Research Officer, Martina Bozadzhieva, and Chief Economist and Practice Leader, Ryan Connelly, discuss the future of the office with JLL’s Chief Economist Ryan Severino, CFA.
Future office demand will be determined by both cyclical and structural factors
The current conversation around the workplace is too simplistic. There is a broad mix of factors at play including employee recruitment and retention, risk management and work-life balance.
One key cyclical issue is leasing activity. With transaction velocity falling 47% below pre-COVID levels, some tenants are exploring “virtual first” or fully remote workplace strategies. Additionally, demand is rising for satellite offices in places like South Florida and Texas.
In terms of structural considerations, work-from-home is a key issue. While WFH will increase, innovation and productivity are quantifiably higher when work is performed on-site, which will bolster office demand.
Looking Forward
Government restrictions, vaccine distribution and school re-openings will be important considerations in office re-entry. Workspace strategy will vary by industry, company and job function, with back-office roles more suitable to long-term WFH. While remote work will provide greater optionality for employees, COVID’s disruption of habits will gradually diminish. Future job creation and de-densification will counterbalance the impact of the expanded work-from-home programs.
Watch the full webinar presentation below:
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