a German perspective
“The workplace has shifted to become a strategic asset rather than a tangible asset. It’s no longer just about the size, price and location but more about the interaction spaces available for team collaboration that can boost creativity, innovation and ultimately bottom-line results.”
Katharina Biermann
Director Office Leasing
Berlin
Avison Young Germany
Return to work sentiment
Whether it is a young professional living in a shared flat looking to experience a different surrounding or a working parent with the impact of their family at home, requiring the focus and concentration that office space delivers, there are different personal reasons for heading to the office from an employee perspective. From an organisational point of view, the industry is a leading factor. Client facing industries such as sales which require a deeper, face-to-face interaction have a bigger need to return to the workplace. This also applies to innovative and creative businesses which require their wider teams in their proximity for inspiration – digital zoom rooms are not enough. Whilst start-ups typically favour the more modern workplace inclusive of a range of workspaces, they are smaller businesses and require that collaboration day-to-day with their teams. Are we going to see fewer desks and more outdoor and roof terrace spaces instead in the near future? There is no obvious market shift to be seen yet that tenants or landlords decrease the office space in favour of larger outdoor areas. However, landlords tend to add more amenities to buildings such as showers, childcare facilities and gyms to facilitate a more flexible workplace.
Connectivity and seamless technological integration
Using tech and data-driven solutions is becoming increasingly self-evident. However, there is still potential for optimisation regarding the infrastructure, especially in periphery locations. Strict regulations such as GDPR also raise the hurdles and occupiers become reluctant to commit to high-tech real estate solutions.
Looking forward and considered solutions
As office employees currently have such a wide choice in range of office space and flexibility, the challenge for companies is to be attractive in their culture and space for collaboration, innovation and productivity. Traditional companies are specifically under pressure as the necessity to change has to take place in an environment where economic uncertainties have risen. Having extensive experience in strategic advisory to our clients across the globe helps us get an even better and broader understanding of their current opinions, issues and (future) needs. Especially in such times of change, it allows us to offer best practice solutions and help guide our clients to successfully achieving their goals. Finding out what office fits the needs of the specific client and not what office seems to be attractive from a first glance, asking the right questions, taking all relevant stakeholders into the discussion or convincing the finance department that investment in a futureproof workplace will pay off. These are all topics which are of importance. We furthermore make sure that our clients have the resources at hand (not only financially but also in terms of knowledge and operational capacity) to turn ambitious projects into reality. While a specific workplace structure has a direct impact on the office letting process and price, it will definitely change the way investors value office properties. Consultancy services to make buildings future proof are required more than ever. But in contrast to occupiers, landlords/investors often already budget investments in workplace features as it is a differentiator for their buildings when they market the office spaces to attract well known tenants or increase rents. While 2020 has brought a lot of uncertainty and put occupiers and suppliers of workspace under financial and organisational pressure, the acceleration of existing trends is certainly a catalyst for improvements that have long been overdue. The current discussions hold great opportunities for those who embrace them and put themselves into their – internal and external – clients’ shoes.
“The major challenge is to convince the decision makers, both occupiers and investors, that improving the workplace experience will be a big reward for them in the near future.”
Marcel Funke
Senior Consultant Investment
Frankfurt
Avison Young Germany
