{"id":3000045481,"date":"2021-09-03T11:58:33","date_gmt":"2021-09-03T15:58:33","guid":{"rendered":"https:\/\/www.wework.com\/ideas\/?p=3000045481"},"modified":"2022-03-31T11:13:01","modified_gmt":"2022-03-31T15:13:01","slug":"how-do-you-quantify-the-value-of-flexibility","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/research-insights\/expert-insights\/how-do-you-quantify-the-value-of-flexibility","title":{"rendered":"How do you quantify the value of flexibility?"},"content":{"rendered":"\n

Traditionalists have always struggled with how to compare the cost of flexible real estate versus the cost of long-term leases<\/a>. The inherent differences between the two real estate offerings make an apples-to-apples comparison challenging. <\/p>\n\n\n\n

But recently, real estate performance metrics have shifted from cost per square foot, or total occupancy costs, to something that is more employee-centric, such as costs on a per person <\/em>basis. And that makes it easier to make a side-by-side comparison. However, the focus on cost <\/em>(both per square foot and per person) often comes at the expense of other organizational goals and prevents corporate real estate (CRE) from adding strategic value to businesses.<\/p>\n\n\n\n

As a result of the growing influence that human resources and chief financial officers have on CRE functions, CRE teams<\/a> are now being challenged to develop real estate strategies that incorporate innovative solutions and agile workplace<\/a> practices to drive employee productivity, improve both talent attraction and retention, and contribute to environmental, social, and governance<\/a> (ESG) agendas. <\/p>\n\n\n\n

We know that partnering with flexible real estate providers to implement agile practices leads to improved employee experience because they provide a consistent experience through access to exceptional workspaces and amenities while also empowering employees to decide where and when they work. <\/p>\n\n\n\n

This shift from a focus on cost\u2014which has resulted in the adoption of balanced scorecards that include a variety of performance metrics\u2014has accelerated over the past year partly due to the impact that COVID-19 has had on utilization rates, and has increased occupiers’ willingness to adopt agile practices. <\/p>\n\n\n