What Comes Next For Office

We’ve noticed an interesting shift in how companies are thinking about their offices.  For some time now, many companies have resolved to employ a hybrid approach to workplace, having employees work in office for a designated number of days each week.  In many cases, this solution was chosen more for how it seemingly struck a compromise between employers who wanted employees in the office and employees who sought freedom to choose.  To date, companies have been relatively lax in enforcing their workplace plan.  What’s changed?   Leadership is now becoming increasingly frustrated at spending on underutilized real estate.  Companies track space usage, and they don’t like what they’re seeing.  The occupancy reality is often way below what it would otherwise be if employees were following the hybrid work policy.  The company leasing 10,000 sf to accommodate an average of 10 workers each day is (painfully) aware of the wasted spend. 
 
This frustration is pushing leaders to take a more conclusive stand about the office.  It’s forcing them to (finally) be convicted in their approach.  One might expect this means reducing the amount of space leased.  If no one is coming to the office, why have it?  But that’s not exactly what’s happening.  Instead, we’re seeing leaders lean more toward enforcement of their workplace policies.  They seek to ensure space usage is in line with the planning upon which the office was conceived.  Perhaps this approach is a byproduct of a more challenging labor market in which employees are more risk averse, more likely to accept their employer’s workplace demands.  Whatever the cause, it’s big for cities like San Francisco.
 
The enforcement of workplace policies brings more people downtown.  Once it begins, it’s likely to accelerate because a lot of this is about habits, behavioral patterns.   We experienced this firsthand when we transitioned from working mostly from home to coming back to the office.   Initially, it was somewhat challenging.  But as we got used to commuting, to getting out of the house, we found unexpected benefits and shifted our preference from remote to in office.  Obviously, this will differ for everyone. 
 
Expect to see more announcements like that made by Salesforce earlier this week, in which it explained employees will be held to task on complying with their workplace plan.  We’re out of the hyper-sensitive, “do as you wish” phase, into a place in which companies expect employees to buy-in to workplace culture.  There’s nothing wrong with that.  In fact, it’s entirely appropriate for those providing the job to dictate where, when, and how the job is done.