Who Stole My Narrative
Historically, the narrative within the commercial office markets in big cities has been controlled by institutions. Institutions who own the buildings and institutions who “own” the employees. The markets fluctuated between “tight” or “soft” and leverage shifted back and forth from landlord to tenant. These 2 market participants, landlord and tenant, supply and demand, called the shots. Sure, there were other variables, the economy, other market influences and influencers. But the narrative was defined within a fairly narrow range.
What’s fascinating (and confounding to some) about the state of the current office market narrative is that it’s not being driven by the institutions. We’re not listening to the voice of the landlords that own the buildings, or the corporations that employ the masses. No. We’re listening to the voices of the employees, the individuals that are speaking up, sharing their views on what makes them productive, healthy and happy. Those ensconced in the comfortable leather chairs around the board room table aren’t quite sure how to deal with this rebellious new member who cares not for their traditions and norms.
This new voice is controlling the narrative and making the institutions increasingly uncomfortable. After all, the institutions and historical market participants have a lot invested in the outcome. Owners have massive investments in the assets. Companies have massive investments in their office space and they believe it’s essential to control where the employees work. Brokers want the market to return to normalcy so their income can do the same. It’s these “vested” parties whose voices sound increasingly shrill as they seek to regain control of the narrative. It is they who demand that all employees return to the office 5 days a week. And they who will tell you that within 2 years the office markets will be just like they were in 2019. They’re the ones with limited patience for the concept of remote or flexible work.
But the voice of the employee continues to dictate. They talk about how much they hate commuting. They’re talking about how they can be productive from anywhere - - - more so than when they’re forced to come to an office. They’re asking why they need to come to an office to do the same things they can do from anywhere. They want to be compensated for the work they do, not where they do it. These employees have had more than just a taste of a different reality, they’ve lived it for over 2 years now.
Personally, I think it’s time to acknowledge a new narrative, even embrace it. The office market is changing with or without the blessing of those who used to be in control. As with all times of great change, some will adapt early and be rewarded; whereas, others will hold steadfastly to the past and be punished.