Is the office making a comeback?

January 5, 2016 Laura McDaniel

One of the biggest discussions in real estate is around workplace. Sitting or standing desks? Cubicles or open spaces? Increased spaces for collaboration or personal development? As the debate continues into 2016, Forbes recently took a look at the amount corporations are investing into their workplaces.

Over the past few years there have been many discussions around the death and disappearance of the office. Most believed that with co-working locations, the spread of Wi-Fi and mobility, and the rise of co-working locations that there would be no need for an office anymore. We would all work from anywhere and everywhere and this was of course a fair and reasonable prediction. But, it’s not entirely true. Our traditional idea of an office is in fact disappearing, that is the row of cubicles lined in a building that looks and smells like a hospital but the office itself is far from dead!

Consider that in Toronto Cisco is investing in a new $100 million innovation hub, Mars Drinks recently invested $29 million in a new facility, Whirlpool put down $85 million, Apple around $5 billion, Samsung $300 million, and the list goes on and on. Deloitte recently built the world’s smartest and greenest building called the Edge that is supposed to cost just under a decade to earn the cost back (cost of the building wasn’t disclosed). These are just a few of the companies in heavily in new spaces, Schneider Electric, Linkedin, SAP, Airbnb, Salesforce, Amazon, and many others are also completely thinking the physical environment. The office space is far from dead, it’s re-emering, in fact a recent report from commercial real estate company CBRE found that U.S. Office investment is at a 7-year high hitting $119 billion.

So, if the office space isn’t dead then what’s going on? Office spaces are re-emerging as employee experience centers. All of the companies that are investing in new or redesigned spaces are doing so because they realize one crucial change that has happened in the workplace. That organizations can no longer assume that employees need to work there and organizations must in fact create environments where people actually want to show up. These beautiful new spaces aren’t being created for fun or because it’s a nice thing to do. Companies are leveraging their physical environment as a new strategic competitive advantage. Modern cafeterias with catered food, modular work spaces that can be moved around, wood-trimmed walls and floors, colorful art-work, stylish furniture, smart lighting and sensors are all part of creating great employee experiences where people actually want to show up to work.

Read the entire article here.

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