Experts from Colliers discuss how influential the expansion of hybrid working is on shaping the commercial real estate market of tomorrow.
In the last two years, the world of work has changed profoundly. Yes, there have been challenges as Covid-19 lockdowns forced businesses across the world to adapt to a remote set-up almost overnight. But it’s also created a significant opportunity for businesses to reassess outdated and impractical working habits and bring in new strategies that are better for them and their employees.
Hybrid work – which enables employees to split their time between the company headquarters, home and a local flexible workspace – is now at the top of the agenda for many companies. It’s what their employees want. In fact, IWG research found that 72% of workers would prefer a hybrid way of working, even if reverting to the former Monday-Friday routine meant earning more money.
Brokers can help advise and guide clients on the new world of work. IWG and Colliers have recently formed a partnership across select US markets, expanding an already long-standing and successful relationship between the two companies in Canada.
The partnership sees IWG working with five senior partners and their diverse team of real estate professionals who moved to Colliers from CBRE in 2021. With over 130 years’ combined tenure for the partners at CBRE, the team, headed up by Vice Chairman Steve Rigby, brings a wealth of knowledge and experience to the table, with plans to expand the team further in 2022.
Rigby says, “Colliers promotes an entrepreneurial and nimble culture that gives our team the flexibility we need to tailor customized solutions for our clients. Their global brand combined with a powerful platform and a broker-focused leadership team provides the ideal environment for our team to excel. It is strongly aligned with our needs, and our clients’ needs, for the new world of work.”
Here, IWG speaks to Colliers’ experts about why brokers will continue to play a pivotal in the future of flexspace…
The role of the broker
Carla Meyer was formerly Director of Broker Partnerships at IWG in North America and is now a Senior Director, Flexible Workspace Advisor primarily supporting the IWG account at Colliers. So how does she view the role of the broker within this changing landscape?
“As the consultants in the field of flexible working, our job is to fully educate the Colliers brokers on the benefits of proposing a flexible option to their clients. As such, it’s important for the brokers to understand how to present flexible workspace to their clients.”
“And, as importantly, to help them navigate the nuances of flexible workspace agreements vs traditional conventional leases so they get the full benefit of the flexible workspace experience for their clients.”
The benefits of hybrid working can be broken down into three key areas when discussing the transition with clients: people, planet and profit. In a nutshell, it’s better for employees who no longer have to spend time and money commuting every single day of the week, leading to a better work-life balance; it’s better for the planet due to the significant reduction in commuting and its associated carbon footprint; and it’s better for a company’s bottom line because they can downsize their real estate footprint.
Future-proofing business plans
Jamie Edwards is a Business Analyst for Colliers who has accrued more than 25 years of commercial real estate experience, including more than 10 years in the flexspace sector directly supporting IWG. She offers sound advice for any clients who may be uncertain about how this new world of work is evolving, and what brokers can do to reassure them.
“As real estate professionals, we are plugged into the changing landscape of the future of work and we use our combined knowledge and experience to guide our clients through the ever-changing workplace terrain,” she explains.
“Now, more than ever, to be successful in business you must be willing to adapt as the world of work continues to evolve. Clients need someone to help cut through the noise and provide relevant and actionable insights that support their business now and in the future. The flexibility that hybrid workspace offers makes it an important part of an overall future-proof business plan.”
Hybrid is here to stay
Will Burchfield is VP, Head of Flexible Workspace Consulting, Americas at Colliers. When assessing the future for the commercial real estate market he firmly believes “hybrid working is here to stay. If the past six months are any indication of where this sector is going, we are all in for one heck of a fun ride,” he says. This is backed up by IWG research, which shows just 13% of FTSE 250 firms expect a full-time return to the office.
“Larger deals, more creative deals, more complex deals are becoming commonplace in the flex industry. Businesses rely on their employees to drive meaningful change. And now, more than ever, meaningful change is also the incorporation of where and how they do their best work.”
And Burchfield warns that companies who don’t make the transition to hybrid will be handing an advantage to their competitors.
“Culture and company DNA can still be widely demonstrated through hybrid working. It just needs to be exhibited in a slightly more creative fashion. Happier employees equals more productive employees.”
“Leaders who have adopted this notion of hybrid work are most definitely in the majority. If leaders do not recognize this new shift in work, they will most likely lose talent to competitors who are.”
Flexspace brokers are in a powerful position to facilitate clients’ journeys into the new world of work. And while some might find the change unnerving, IWG Founder and CEO Mark Dixon argues that it brings a wealth of opportunity. Ultimately, he says, “hybrid working is already delivering spectacular benefits for employees and employers alike. The future of work is already with us, and it’s only going to improve.”
IWG has been helping brokers design sustainable corporate flexspace solutions for the last 30 years. Find out how we can support you today.
