As companies weather the recessionary impacts of 2020 and further grapple with extended remote work requirements driven by the pandemic, the need to plan amid uncertainty has never been more critical.
Creating an updated portfolio strategy to align with corporate goals can be a daunting task, since real estate is traditionally a long-term committed asset. The degree of difficulty, as well as the time needed to successfully execute these strategies, varies. Focusing on portfolio strategy to ensure that the real estate footprint can shift as trends unfold is critical.
Companies that embrace planning amid uncertainty can gain advantages in the current real estate market.
Changing market fundamentals may trigger transaction activity; evolving space utilization may trigger optimization efforts and accelerated demographic trends may trigger new location and space considerations.
All these things have present and future cost and balance sheet implications that must actor into accounting analysis, ownership structures and capital priorities as decisions unfold. Identifying the appropriate steps in the near, mid and long term helps to create opportunities that can provide iterative changes that make a big impact on a traditionally long-term committed real estate portfolio.
Although efficiency remains top ofmind, taking a step back to reallychallenge the status quo givenanticipated workforce behaviorchanges is critical to future strategy.
For further information on restructuring office space, contact Mike Young or visit or our website.
Or for the full report: Real estate reset: 8 core truths, click here.
Read other articles in the series:
Resetting Real Estate Strategy: Location - A series of core truths guiding the future of work (part 2 of 6)
Resetting Real Estate Strategy: Design and Experience - A series of core truths guiding the future of work (part 5 of 6)