Editor’s Note: Last week, WRAL TechWire launched a series of special reports about what’s happening in today’s economy, in the new world of work, and the future of the Triangle. We call the series the “Future of Work.” The series is supported by commercial real estate firm JLL and other partners. The first special report is here, and the second story is here. The series continues today, and WRAL TechWire reporter Jason Parker will host a LinkedIn Live session at 9 a.m. eastern time this morning.
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RALEIGH – The hybrid office is here to stay. At least, for now.
That’s according to Molly Glasgow, executive vice president at JLL, who spoke with WRAL TechWire about the future of work and the future of the workplace.
“Companies are still investing in space,” said Glasgow. “Even hybrid and “fully remote” companies.”
Take downtown Raleigh, for example. Companies are still investing in office space, and investors are pouring money into commercial residential projects, according to a recent report from the Downtown Raleigh Alliance. The report estimated that 1.7 million square feet of office space is currently planned or proposed in downtown Raleigh. Even retail square footage is increasing in the downtown core, according to the report, which also found that significantly more people are parking cars at the parking garages in the first quarter than during the same period a year ago.
Changes in labor market
What’s happening with this increasing demand, and why are companies rethinking their places and their spaces?
There’s an increasingly competitive talent and labor market, with tens of thousands of jobs open in the Triangle region, and hundreds of thousands of jobs open across the United States and the rest of the globe—and a significant portion of these roles can now be done remotely.
Still, companies are seeking newer, nicer space, said Glasgow, “and they are doing everything they can right now to keep employees happy.”
Workplace and work space are becoming more and more integrated into how companies think about their talent pool, their existing labor force, and the future of the job market.
And while there is no one hybrid model or remote work policy that will fit every company’s needs, many companies are reimagining their relationship to place and space.
Special report: Space in high demand, even as future of work remains uncertain
Places and spaces for the future of work
The future of work is collaborative, connected, and highly-amenitized.
Most of JLL’s clients, for example, are seeking spaces designed to optimize employee experience, located in places that keep employees engaged and connected to highly sought after amenities, said Courtney Fain, vice president of workplace planning and strategy at JLL.
Employees are likely to seek, even demand, forms of flexibility in their work, said Glasgow. But the reality is that there aren’t yet viable, demonstrable case studies for what the future of work will look like, she said. “We are entering into a five to ten year experiment,” said Glasgow. “But the experiment only begins when folks have re-entered or returned to the new normal—this hasn’t fully happened yet.”
That doesn’t mean employers aren’t investing in place or space.
Because they are—according to JLL, technology companies nationally added some 15.3 million square feet of leased office space since the onset of the pandemic, even as much of the workforce remained based remotely.
What’s happening
“Employers are looking for ways to invigorate their buildings with more useable outdoor space, common areas and would like to integrate the latest sustainable designs and healthy building technologies,” said Clare Greco, vice president, project and development services, and Raleigh market lead at JLL. “Real estate investors and operators are investing in more sustainable features including electric vehicle charging, photovoltaics, energy efficient lighting and other building life cycle investments to increase the value and marketability of their facilities.”
Those investments are coming even as employees split their time between home and the office, noted Fain. “Flexible work is here to stay,” she said. “As a result, the purpose of the office is shifting and we are seeing a focus on human experience, with more space dedicated to collaboration and socialization, and less for individual space.”
That’s leading to investments in health and wellness programs and enhanced HVAC systems with better ventilation, among other investments. And spaces are being reimagined using the principles of biophilic design, incorporating more natural light, and adding access to outdoor work spaces for both meetings and workstations.
Special report: The future of the Triangle’s economy hinges on its spaces
Here to stay
The current expectation—that hybrid is here to stay, for now—is also resulting in companies making significant upgrades when it comes to technology, better incorporating technology into collaboration spaces on-site that open up collaboration access to those who may be working in a remote location, said Fain.
The experience must be “fully integrated,” said Fain, and provide “equitable experiences for employees who are both in person and working remotely.”
Ultimately, employers are making a bet on hybrid, and that bet, to be successful, said Fain, “will require a technology investment to ensure that the experience is seamless and productive.”
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This editorial package was produced with funding support from JLL and other partners. WRAL TechWire retains full editorial control of all content.
