Blogs

Space Matters in Today's Dialogue on Industry Remodeling

By Richard Kadzis posted May 19, 2010 01:21 PM

  

How are CRE professionals addressing the need for industry change at a time when businesses need to remodel and the ability to readapt is more critical than ever?

I've been asking a lot of industry professionals about the need to remodel ourselves, starting with brokers. Some of them are 'jumping the curve' in a remodeling sense by blending strategic services with brokerage. Some are even embracing compensation based on returns against long-term value, not just commissions.

Like our Fall Global Summit theme says, space matters, too. So the industry change dialogue also applies to workplace practices like mobility. It's kind of like sustainability including but going well beyond green buildings.

It’s safe to say that the “mainstreaming” of mobility and other forms of alternative workplace practices (AWS) accelerated due to economic and cost cutting pressure, but there’s more to the current picture than efficiency.

“The workplace can't be viewed the same as real estate and managed as a portfolio plan. It's more than supply and demand, head count growth and shrinkage,” as strategist Sven Govaars observes.

Still, Govaars has an even larger point that ties to a seemingly disconnected point about home mortgages. “The mobility and flexibility of the workforce to go towards economic opportunity is being dragged down by the mortgage crisis,” he asserts.

With fewer people able to qualify for mortgages, he wonders, “What happens when the workforce rents versus buys? People will not be anchored to a community any longer.”

It will have huge impact on CRE, which itself leases more space than it owns today.

Govaars sees it as, “Maybe a larger factor than social media and generational differences” in a workplace context.

Higher-Level Forces

The impact of social media, however, cannot be discounted when we talk about remodeling at a time of growth with volatility and uncertainty still defining the climate.

 

Kim Burt, a visionary on cloud computing and wikis, agrees with the point that the workplace can’t be viewed any longer as the same as real estate. The scale and velocity of social media adoption – by people and companies – is one key reason.

 

‘The underlying keys to innovation are creativity

and design.’

 

Burt, founder of Amsterdam-based Original Creative Coop BV, believes that it won’t be cost savings or change management practices determining how many more employers will commit to mobility and other forms of AWS.

 

“It lies in the fact that society itself has changed,” she insists.

“Enabled primarily by an expanding ease of connectivity,” Burt says, “work will increasingly be combined with the other activities in our lives.” As part of this now-optimized era of the “knowledge worker,” knowledge-sharing becomes more critical.

So, as businesses remodel to suit the changing social backdrop, “organizations will need to create spaces that are more effective learning environments,” she predicts.

“The ‘work-place’ will increasingly become the ‘work-community,’ a place for collaboration and knowledge sharing,” foresees Burt.

0 comments
18 views

Permalink