Since the pandemic, the real estate industry drastically experienced a massive change. Real estate leaders must adapt to the work transformation case to still accommodate real estate-related necessities and employee welfare. Both residential real estate and commercial real estate markets experienced a work performance challenge during the virus. However, proper utilization of technological trends can help the real estate market. Fortunately, Crown Asia is one of the most competitive real estate in the Philippine Market and continuously offers pristine real estate properties; maintaining their quality before, during, and after the pandemic.
Kath Taburada and Vincent Bisua discuss how Colliers’ Global Occupier Outlook Report can help real estate leaders develop strategies and navigate the future of change. The rapid upheaval of the workforce and workforce is causing businesses to adapt to new technologies and adapt to new realities.
The COVID-19 pandemic has made remote work more prevalent, making it difficult for businesses to predict their space needs. The report explores pressing issues and opportunities for occupiers, including talent engagement, technology adoption, and portfolio optimization. Over 65% of workers seek more in-person time and 70% want flexible work options. 66% of business decision-makers are redesigning physical spaces to accommodate hybrid work environments. Companies are considering alternative workplace solutions and new locations, investing in ESG and DEI initiatives, and increasing demand for green-certified buildings. Staying ahead of the curve is essential in the constantly changing real estate market, as it is a necessity for real estate leaders to navigate these shifts and lead their firms through transformative processes.
In an article titled “Navigating the future of change: What Philippine occupiers can do,” Kath Taburada and Vincent Bisua discuss how Colliers’ Global Occupier Outlook Report can help real estate leaders develop their strategies and navigate the future of change while assisting occupiers in projecting their office space needs amidst uncertainties brought on by the ongoing transformation of the workplace and workforce.
Because uncertainty and change are more prevalent than ever, organizations are not the same as they were two years ago.
Businesses are currently through a period of rapid upheaval thanks to technological advancements and a significant shift in business realities.
According to Forbes (2020), sectors and business strategies are being disrupted by technology at an exponentially growing rate. The current pandemic has worsened the situation because interruptions frequently happen gradually over time as people get used to technology. New realities are forcing the workforce to adopt, quickly iterate, and adapt to new technology in order to sustain any type of productivity. Future real estate trends will be influenced by the quick development of new technologies and how we handle the epidemic. Awareness and foresight will play a significant role in the strategy and approach taken to several aspects of the dynamic real estate market. The COVID-19 epidemic has helped the world embrace remote work much more quickly than in the past. And since many businesses may now be operated wholly or in part from a distance, it is unlikely that we will go back to the typical office environment that workers were accustomed to.
Businesses and the Philippine Economy Are Also Coping With the Rapidly Increasing Inflation.
According to Crown Asia (2022), consumers in various industries may find it difficult to cope with the growing inflation rates. However, this increase may present a chance to obtain genuine returns from real assets for the housing market and, let’s say, a real estate investor. Thus, the issue arises: Is economic inflation beneficial for the real estate market?
Property values grow as inflation increases, which has a comparable effect on the housing market. Inflation also raises the cost of commodities. Real estate developers must invest more money to build a new home and lot or condo since the cost of the supplies, machinery, and raw materials required to finish the project is increasing.
Property values will inevitably rise to balance that gain. This can be advantageous for real estate owners since they effectively get to build equity for nothing. However, potential buyers or new investors may find it challenging due to growing costs and higher borrowing rates. However, those who can afford to buy good homes are placed in a market with rising house values, which can also be used as a different, consistent source of income. Additionally, the rate at which the value of condominium properties rises is often higher than the rate of inflation.
Workplace Transformation and the Changing Nature of Work
Rapid technological breakthroughs, changing employee expectations, and international calamities like the COVID-19 pandemic are all contributing to a fundamental alteration of the workplace. These elements are transforming conventional workplaces and fostering the development of a new work paradigm. In addition to the physical setting, the idea of workplace transformation includes how work is organized, carried out, and viewed. In this post, we’ll examine the major forces influencing workplace change and how they’re influencing how work is evolving.
The Effect of Hybrid Work Setup on the Commercial Real Estate Market
The standard 9-to-5 workday is being replaced by more flexible schedules. With the ability to combine their personal and professional life, employees are increasingly choosing remote work, telecommuting, and hybrid work arrangements. The COVID-19 epidemic hastened the acceptance of remote labor by demonstrating its viability and advantages. This change also raises concerns about how to keep remote or scattered teams feeling a sense of community and how to avoid burnout.
When the COVID-19 pandemic broke out, it fundamentally altered how people lived, worked, and went about their daily lives in cities all across the world. Where and how they worked had undergone the biggest shift. Many workers quickly moved from traditional offices to home offices after complying with lockdowns and office closures, growing weary of uncomfortable masks, and being made possible by remote-work technology. Many of those workers made the decision to relocate outside of metropolitan cores after being relieved of their daily commutes. And when fewer of them began to work and reside close to urban establishments, less of them began to shop there. Some of these behavioral changes have eased in recent months. Others continue, especially among office workers who continue to do hybrid work (which combines remote and in-office work).
The demand for office and retail space is generally lower in 2030 than it was in 2019, according to McKinley’s research, which modeled future demand for office, residential, and retail space in several scenarios1. However, the anticipated reductions in their moderate scenario are smaller than those predicted by many other researchers. Additionally, their data demonstrates the complexity of the ripple effects, with some types of cities and areas being more severely impacted than others. They took into account a wide range of variables, such as long-term population trends, employment trends, including the continuing effects of automation, office attendance patterns by industry, employee coordination, which is defined as the maximum share of workers in the office at any given time, workers’ ages, and incomes; the proportion of a city’s inhabitants that commute from elsewhere, the variation in housing costs between neighborhoods, and shopping trends including the steady rise in internet purchasing. Our modeling incorporates data from a sizable global survey that we carried out to comprehend the behavioral alterations brought on by the pandemic, in addition to information from numerous secondary sources.
Mihir Shukla, a digital entrepreneur, said: “People keep saying AI is coming, but it is already here” at the 2023 World Economic Forum. Over the past ten years, the usage of artificial intelligence (AI) for routine jobs has grown significantly. ChatGPT, a product of OpenAI, is a shining example of this, with its well-liked generative AI being employed by more than a billion people for activities as varied as writing and coding. Simple fact: ChatGPT reached its 100 millionth user in just 60 days, while Instagram needed two years to reach the same milestone. This illustrates the speed and scope of AI acceptance.
According to a recent Stanford University study, the number of AI patents surged 30-fold between 2015 and 2021 (HAI 2023), demonstrating the quick pace of advancement in the field of AI development. AI-powered systems are now capable of a wide range of tasks, including information retrieval, logistical coordination, financial services, difficult document translation, business report writing, legal brief preparation, and even disease diagnosis. Furthermore, given their capacity for learning and improvement through the application of machine learning (ML), they are likely to increase the effectiveness and accuracy of these jobs.
Rising Development of Artificial Intelligence
The rapid advancement of technology has been one of the main drivers of workplace change. Task completion has changed as a result of automation, artificial intelligence, and the emergence of digital platforms, allowing for more productivity and efficiency. Because of this, virtual workspaces have been developed, enabling workers to collaborate and communicate without difficulty across regional borders. By allowing the organizations to make well-informed decisions, cloud computing and advanced data analytics are changing the nature of work and the skills needed by people.
The trend to replace people with machinery is growing as businesses want to reduce COVID-19 infections in the workplace while keeping operational costs low.
The transition from using humans to computers may accelerate as businesses shift from being in survival mode to figuring out how to function while the pandemic persists. In a recent analysis, economist Daron Acemoglu from MIT and Boston University predicted that by 2025, robots would supplant 2 million more workers in the industrial sector alone.
The impact of AI on manufacturing is expanding as businesses try to reduce operational costs by displacing workers with machinery.
Over the past ten years, the usage of artificial intelligence for routine jobs has grown significantly. The European panelists of the CfM-CEPR survey from May 2023 were asked to forecast how AI would affect global economic growth and high-income country unemployment rates during the following ten years. Most panelists believe that AI will increase global growth from its historical average of 4% to between 4% and 6% annually. The majority of the panel also thinks AI won’t significantly change employment rates in high-income nations, with the remaining members split evenly between forecasting rising and falling jobless rates. Notably, due to the fact that AI is still in its infancy, the majority of panelists express a high level of doubt about their projections.
Emerging Generation Z and How They Perform in the Workforce.
Gen Z will revolutionize and disrupt the workplace more than any other generation since they are a tech-savvy generation. According to Mark Beal, an assistant professor of professional practice and communication at Rutgers University, “Gen Z will inspire leaders to focus on mental health, including offering mental health days as an employee benefit.”
“Gen Z will repeatedly demand pay equity and a workplace environment that is truly diverse and inclusive and in which they feel at home. Finally, Gen Z will drive executives to invest in technology that makes it more efficient and effective to finish their work because they are a cohort of digital natives and early adopters of innovative technologies, according to Beal.
Must-Have a Transformation Guide for Real Estate Leaders
Businesses find it difficult to predict their space needs due to ambiguity and unpredictability; as a result, many are taking office expansion and financial investments more cautiously. The Global Occupier Outlook Report from Colliers, a leading authority on real estate strategy, was recently published to assist occupiers in navigating this new reality amid the rapid upheaval of the workforce and workplace. The perspective explores the most pressing issues and exciting opportunities occupiers confront, including talent engagement, technology adoption, and portfolio optimization, through its three main sections, Engage, Evolve, and Accelerate.
The report highlights that occupiers are reassessing their office spaces to determine the optimal mix for employees. Over 65% of workers seek more in-person time and 70% want flexible work options. 66% of business decision-makers are redesigning physical spaces to accommodate hybrid work environments. Companies are considering alternative workplace solutions and new locations. Hybrid working models optimize costs and employee flexibility. Companies are investing in ESG and DEI initiatives, including green design and tech-enabled features. Demand for green-certified buildings will continue to rise as occupiers seek eco-friendly buildings meeting environmental, energy, and health standards.
Staying ahead of the curve is not just a choice in the always-changing real estate market; it is a need. Over the past ten years, the industry has seen tremendous transformation as a result of consumer behavior changes, technical improvements, and movements in the global economy. To ensure ongoing success, real estate leaders must successfully navigate these shifts and lead their firms through transformative processes. This essay offers real estate leaders a thorough road map for navigating these changes and thriving in the competitive market.
Take Advantage of Technological Innovation
The real estate market has been profoundly altered by technology, from virtual tours of properties to blockchain-based transactions. Leaders in the real estate industry need to keep up with the most recent technological developments and use solutions that improve operational effectiveness, customer experiences, and process efficiency. Automation, data analytics, and artificial intelligence can help with decision-making, spotting market trends, and providing clients with specialized services.
Customer-Centered Strategy
Customer preferences and experiences are the center of the contemporary real estate market. Understanding the needs, expectations, and pain points of their clients must be a top priority for leaders. Customer relationship management (CRM) software implementation can assist in managing interactions, personalizing communications, and upholding enduring partnerships. Providing exceptional customer service will encourage both loyal customers and effective word-of-mouth advertising.
Green Initiatives and Sustainability
Property decisions are now heavily influenced by sustainability. Leaders in the real estate industry must include eco-friendly methods and energy-saving technologies in their projects. Adopting ecologically friendly designs not only supports global sustainability objectives but also draws in eco-aware customers.
Flexible Approach to Operations
The pandemic brought to light the need for flexibility in the real estate industry. The demand for office and residential spaces has changed as a result of remote work and shifting spatial needs. To meet changing needs, real estate leaders should take into account hybrid office models, flexible lease choices, and adaptive living spaces. The ability to adapt quickly to changes in the market will be essential for success.
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