Global Survey Results on Office Use: “What Tenants Want Worldwide”
International real estate consultancy Cushman & Wakefield (C&W), in collaboration with CoreNet Global, the global professional network of corporate real estate managers, conducted a survey in February and March 2023 on tenant behaviour in the changed working environment following the Corona pandemic. The results, now published, are based on responses from CoreNet Global members in the Americas, EMEA and Asia Pacific. Respondents represent companies that identify themselves as end users, business developers and service providers/consultants.
“The results of our survey in collaboration with CoreNet Global provide a detailed insight into the driving factors in location and real estate decisions of tenants worldwide and show a shift in thinking and approach to post-pandemic decision-making,” says Dimitrios Vlachopoulos, Head of Portfolio & Location Strategy EMEA, C&W. “It also reveals how tenants are responding to the increasing importance of corporate ESG objectives in the context of climate change.”
Different priorities in the Americas and EMEA region
Cost, human resources and operational excellence are the three key strategic factors influencing real estate decisions. While human resources is high on the priority list in the Americas, it ranks second in the EMEA region.
“Tenants identify cost, human resources and operational excellence as the most important drivers of their real estate strategy and decisions. The ranking of these factors has changed somewhat in 2023. Human resources remains very important and continues to rank first in the Americas, but the importance of cost has increased. This is not surprising given the increased uncertainty since mid-2022, when inflation peaked and interest rates began to rise,” says Dimitrios Vlachopoulos.
Importance of ESG varies
ESG is gaining importance and most real estate teams have defined ESG targets, but their underlying factors vary by global region.
“Since the last survey, ESG has moved up from 8th to 5th place globally as a key driver for corporate real estate. Two-thirds of CRE executives said their company has defined ESG goals, is already implementing them or plans to do so. The reasons for aligning real estate portfolios with ESG targets vary by global region. In North and South America, the focus is mainly on corporate reputation, while in the EMEA region, the focus is on environmentally responsible behaviour,” explains Dimitrios Vlachopoulos.
Shared space in offices increasingly important
The share of shared space within offices has almost doubled compared to the pre-pandemic period. Their share is now between 40 and 50 per cent compared to 20 to 30 per cent before the appearance of the Corona virus`. The majority of tenants (89 per cent) see the office as a place for creativity, innovation, exchange and possible meetings.
“The purpose of the office is changing, but tenants have not yet fully adapted to the new way of working,” comments David Smith, Head of Americas Insights, Global Research, C&W. “The office is not used to control employees, and many employees do not need the office to be productive. Rather, it is a meeting place with clients, a place for creativity, innovation and synergy, and for learning and development. Currently, about half of tenants believe their offices serve these purposes.”
You can find the complete study for download here: https://www.cushmanwakefield.com/de-de/germany/insights/what-occupiers-want