I love reading all the articles about the Commercial Real Estate (CRE) Industry being ripe for disruption. I enjoy even more listening to speakers talk about our fragmented industry. They proclaim how we are waiting to experience change. They talk about how businesses continue to lease space the same way they always have. Well, it’s time to wake up! CRE has in fact been disrupted. Business are making different choices.
Businesses are making different choices
I love reading all the articles about the Commercial Real Estate (CRE) Industry being ripe for disruption. I enjoy even more listening to speakers talk about our fragmented industry. They proclaim how we are waiting to experience change. And businesses continue to lease space the same way they always have.
Well, it’s time to wake up! CRE has in fact been disrupted. As a result, businesses are making different choices. I’d like to introduce you to what was once a little CRE niche. It’s called co-working. Let’s review the truth about what co-working really is and how much it is really changing CRE.
So many people think co-working is just giving a solo entrepreneur a place to work, besides the local Panera. However, it’s much bigger than that. All sized businesses, including major corporations, have embraced co-working.
Enterprise level companies are signing long term, sizable leases across the country. Those leases are not always with a traditional office building Landlord. For instance, businesses are signing with Novel Co-Working, Serendipity Labs, Convene, and WeWork instead. The deals are for 6-, 20-, 50-, 200+ person offices. If that’s not a disruption, I’m not sure what is.
ACE stands for Agility, Culture, and Engagement
Why do they choose co-working? We call it ACE. ACE stands for Agility, Culture, and Engagement. Co-working companies offer all three. Most Landlords offer none.
First, agility allows a business to be nimble. It also enables the scalability that today’s companies need and demand. Many co-working companies have suites of varying sizes. They are ready-to-occupy, with all the amenity bells and whistles. They offer businesses the ability to move to a larger or smaller suite when needed (like elastic).
Second, companies choose co-working because it’s “easy”. They can plug and play. As a result, finding and moving to new space doesn’t interrupt their business. Real estate does not have to be a distraction.
Finally, businesses are currently undergoing talent wars. As a result, recruiting and retaining talent is more important than ever. They sell their culture to win the best talent. In order to do that, employers must find a space that aligns with their culture.
Many vital companies’ core values align with the features co-working companies offer. These may include a wellness room, espresso and beverage services, snacks, or fitness. In other words, amenities are key.
Similarly, engagement in the workplace stimulates creativity, collaboration, and corporate alignment. Often co-working companies offer workplace activities, networking events, shared spaces, and concierge services. These types of amenities help keep everyone engaged.
To conclude, the CRE industry is ready to be disrupted. Co-working offers amenities that align with culture and improve employee engagement. In addition, co-working companies provide businesses with a flexibility and agility that a 10-year lease simply cannot. In other words, co-working is an industry disrupter.
Visit www.coeospace.com to discover all types of move-in-ready space in seconds.
It is important to know that almost 40% of the workforce would give up $5,000 a year in salary to be happier at work and in 2018, only 42% of employees could say that they were happy where they worked.
Did you know that 61% of employees report being burned out on the job and that stress is the biggest contributor of sick days across the board? Those sick days cost employers about 3.5 billion dollars each year and, while it may be easy to call it normal day-to-day life, the work place is one of the main causes of stress. We’ve all heard the term, “Work Hard, Play Hard,” but what happens if your organization is only working your employees hard in hopes that they “play hard” on their off hours?
While it might seem scary, it’s certainly possible to have a fun workplace without sacrificing productivity… in fact, happy employees that are having fun are actually up to 20% more productive than their unhappy counterparts. When an employee is feeling sad or low for any reason, their motivation drops which causes them to withdrawal and be overall less productive. You can’t always control the outside stress that employees may have. However, by creating a positive environment for your employees to work in, you can hopefully put them in a better mood, faster.
How do you make your office fun without installing a water slide? Here are a few more practical ideas:
To give your employees motivation and to keep them active, you should definitely encourage them to take regular breaks away from their desks. Maybe that’s a pool table or some beanbag toss… just a chance to pick up a quick game to relax for a few moment before getting back into work.
How about instituting a little “Office Olympics.” This can be done by things like having employees pick teams and playing charades or seeing who can type the fastest. If you’re ever looking for some great ideas of making something out of nothing, The Office has a GREAT episode on their own Office Olympics that could be easily replicated.
Get out of the Office
While you can coordinate a happy hour for your team, you could also do things like taking a long lunch on a nice day to walk around a park or perhaps make an ice cream run… it doesn’t have to be anything that will break your companies check book, but getting out of the office has been shown to loosen up and de-stress your employees.
At the end of the day, there are many things you can do to bring a good vibe to your office and it doesn’t all come back to wasting time or money. It is important to know that almost 40% of the workforce would give up $5,000 a year in salary to be happier at work and in 2018, only 42% of employees could say that they were happy where they worked. What about that remaining 58% of the workforce? Don’t lose out on some of your best people because you think you can’t afford to give them what they want or need. Making some minor changes and tweaks to your office environment can ensure you’re not only gaining the top talent but keeping the existing talent you have.
You have dreams of making the bigtime – hundreds of employees, unique office space, cool kids breaking down your door to work for you. Then reality hits you smack dab in the face!
You’re too big to be in shared space and too small for your own space. You are not the most well-known company on campus and recruiters from Goggle have you beat on the cool-kid factor and attracting the top devs. You’re looking for space that works for you, but you have a real job to do that takes up way more of your time than you ever imagined possible.
What do you do? Quit? Put your head under the sand? Speaking of sand, maybe head to the Bahamas for a nice, long vacation? It’s likely that none of those options will pay your bills, so maybe thinking through a few critical needs for your growing company is in order.
Location, location, location. We’ve all heard it before, but it doesn’t make it any less true. Finding the ideal location is a challenge often best left to the professionals, but still involves input from you. Spend some time answering a few questions. Where are your competitors? Where are your supplies coming from? Where are your clients located? Where can you recruit best from? And that’s just the business questions! What about your human resources? Where do they live and where are they willing to work? Are there local universities that might be a good source of talent? This list of questions just scratches the surface, but it’s a place to start.
Yes, Talent Impacts Location. And, while we’re on the subject of your talent impacting location, amenities for your staff and clients are also key considerations. Everyone thinks they’d like a large slide in the middle of their very colorful, contemporary space. But before you design (and pay) for that, ask yourself some serious questions. What is your company culture? What do you value – Collaboration? Focus and detail? Walkability? Bike-ability? Work/life balance? Who are your clients? Lawyers and accountants may respond differently to your slide than autonomous car engineers. There may be better ways to reach out to talent and clients. Art and culture may be amenities that appeal more to some staff, while proximity to night life may appeal to others. There is no right answer, because every organization is different. But, because every organization is different, asking the questions is an important step in the process.