{"id":55433,"date":"2019-07-17T10:00:57","date_gmt":"2019-07-17T14:00:57","guid":{"rendered":"https:\/\/www.wework.com\/ideas\/?p=55433"},"modified":"2020-09-03T05:53:00","modified_gmt":"2020-09-03T09:53:00","slug":"its-time-to-humanize-real-estate","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/research-insights\/expert-insights\/its-time-to-humanize-real-estate","title":{"rendered":"It\u2019s time to \u2018Humanize\u2019 real estate"},"content":{"rendered":"\n<p>From floor plans to location, adding new space to a company\u2019s real estate portfolio can be a painstakingly comprehensive process. But once the ink has dried, it\u2019s the people who work within that space who will determine that company\u2019s success. So it stands to reason: When it comes to real estate, shouldn\u2019t we consider the workplace experience as much as we do the bottom line?<\/p>\n\n\n\n<p>That was the question posed last month at WeWork\u2019s \u201cHumanize San Francisco,\u201d an experiential <a href=\"\/ideas\/financial-benefits-of-agile-real-estate\">real estate<\/a> event in the heart of wine country. Along with the chance to connect with industry peers and experience the beauty of the Napa vineyards, guests at Humanize were taking part in something bigger than themselves: They were sharing in the knowledge that their collective actions have a direct impact on more than 1 million people.<\/p>\n\n\n\n<p>That\u2019s not a typo\u2014the average enterprise-level company has thousands of employees, and only one chief head of real estate. When employees are spending upward of 40 hours a week in the office, it starts to become clear how much heads of real estate affect their businesses through the spaces they provide.&nbsp;<\/p>\n\n\n\n<p>At Humanize, attendees explored the many ways in which real estate fits into the larger business ecosystem. Workspace, and the experience employees have within it, has always been closely tied to a business\u2019s bottom line\u2014but how will that evolve over time? This concept of <a href=\"https:\/\/www.wework.com\/workspace\">the future of work<\/a> garnered much discussion from the Humanize speakers. They saw two trends that will fundamentally shape real estate in the years to come: the rise of the human-centric workplace and agile real estate.<\/p>\n\n\n\n<figure class=\"wp-block-embed-vimeo wp-block-embed is-type-video is-provider-vimeo wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"WeWork at Humanize San Francisco 2019\" src=\"https:\/\/player.vimeo.com\/video\/347823464?dnt=1&amp;app_id=122963\" width=\"500\" height=\"281\" frameborder=\"0\" allow=\"autoplay; fullscreen; picture-in-picture; clipboard-write\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2  id=\"the-human-centric-workplace\"class=\"wp-block-heading\"><strong>The human-centric workplace<\/strong><\/h2>\n\n\n\n<p>Today, employees expect more from their workplaces than ever. And it\u2019s no wonder: The average person spends 90,000 hours at work in their lifetime.&nbsp;<\/p>\n\n\n\n<p>As such, workplace fulfillment is an imperative. \u201cThe whole myth that work doesn\u2019t have to play a fulfilling role in our lives simply isn\u2019t true,\u201d explained Aaron Hurst, CEO and cofounder of peer coaching company <a href=\"https:\/\/www.imperative.com\/\">Imperative<\/a> and the <a href=\"https:\/\/taprootfoundation.org\/\">Taproot Foundation<\/a>. \u201cResearch shows that we cannot be fulfilled in life if we\u2019re not fulfilled at work.\u201d&nbsp;<\/p>\n\n\n\n<p>How then can company leaders create workspaces in which employees feel fulfilled?&nbsp;<\/p>\n\n\n\n<p>Robinson explained that employees at every company have the same need for human connection. \u201cWhen you get down to it, no matter how big or small the business, we all want the same thing out of work,\u201d he said. \u201cWe all want to feel connection; we all want to feel growth. We all want to feel like what we\u2019re tied to something really important, that we\u2019re making a difference.\u201d<\/p>\n\n\n\n\n\n<p>These days, it\u2019s vital for the employer to be the facilitator of in-person connection, so work itself takes on a whole new meaning\u2014and exists in alignment with each employee\u2019s values.<\/p>\n\n\n\n<p>That\u2019s why workplaces are being designed with more empathy for employees. Corinne Murray, head of activity-based workplace practice at WeWork, believes the modern workplace is becoming increasingly human-centric. \u201cMeasuring efficiency as total usable square feet divided by the total population is an abstract formula that doesn\u2019t account for how people actually experience their workplaces,\u201d said Murray. Rather than being designed only for <a href=\"https:\/\/www.wework.com\/ideas\/measuring-for-workplace-efficiency-consider-your-people-first\">efficiency, <\/a>workspaces will be built to give employees the best experience possible. This means that employees can find\u2014and be free to use\u2014the space types they need at any particular moment: common areas to connect, conference rooms to meet, and quiet spaces to focus.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.aecom.com\/\">AECOM<\/a>, the multinational engineering giant, is one company that\u2019s making this shift to activity-based working (ABW). \u201cABW allows employees to choose how and where they work best within our office space,\u201d said Luigi Sciabarrasi, senior vice president and global real estate lead at AECOM. \u201cThrough this approach, not only have we been able to listen and respond to what our employees need, but we\u2019ve been able to drop five million square feet of real estate by optimizing our portfolio.\u201d<\/p>\n\n\n\n<p>Technology can also play a role in better connecting businesses to their employees\u2014whether that\u2019s understanding how conference rooms are being used day-to-day, or how different teams leverage a diversity of space types. \u201cUltimately, <a href=\"\/ideas\/using-lasers-to-capture-the-tiniest-details-of-a-workspace\">technology allows us to better understand<\/a> and respond to our employees\u2019 needs within the workspace,\u201d said Zachary Holmquist, senior director of product at WeWork. \u201cBecause of that, data-driven decision-making has the ability to strengthen the connection between employers and their teams.\u201d<\/p>\n\n\n\n<h2  id=\"agile-real-estate\"class=\"wp-block-heading\"><strong>Agile real estate<\/strong><\/h2>\n\n\n\n<p>So if companies need to rethink the types of spaces they offer employees, they also need to reconsider <em>how<\/em> they source spaces. Despite businesses having to change and adapt more quickly than ever, the traditional real estate process has remained unchanged.&nbsp;<\/p>\n\n\n\n<p>Leases remain inflexible, and\u2014especially in today\u2019s unpredictable business climate\u2014high risk.&nbsp;<\/p>\n\n\n\n<p>\u201cWhy take on a 15-year traditional lease when head count is rarely planned for more than three years out?\u201d asked John Lewis, head of global real estate advisory at WeWork. \u201c<a href=\"\/ideas\/financial-benefits-of-agile-real-estate\">By embracing agility<\/a>, WeWork is disrupting the traditional model,\u201d said Lewis. \u201cWe\u2019re looking at real estate as a liquid, not a static, asset.\u201d<\/p>\n\n\n\n<p>In addition to providing enterprise companies with flexibility, agile real estate also helps build communities, according to Robinson of WeWork\u2019s Powered by We. \u201cFlexible working environments benefit companies of all sizes, from startups to large enterprises,\u201d he said. \u201cEmployees are having a better workplace experience, while at the same time, businesses are able to run a more efficient real estate portfolio\u2014we\u2019ve found that <a href=\"https:\/\/impact.wework.com\/\">WeWork offices are 2.5 times more efficient<\/a> than traditional office space.\u201d<\/p>\n\n\n\n<h2  id=\"agility-and-your-people-putting-the-two-together\"class=\"wp-block-heading\"><strong>Agility and your people: putting the two together&nbsp;<\/strong><\/h2>\n\n\n\n<p>While agile real estate and human-centric workplaces are inevitable, real estate leaders need to be change agents within their companies. It\u2019s vital that they examine their impact on the people around them, as well as on their business\u2014because when it comes down to it, the two are forever linked. <br><br>\u201cWeWork is creating a world where people can make a life, not just a living\u2014and real estate has an incredibly important role in elevating the employee experience,\u201d said Robinson. \u201cWe\u2019re on this journey together\u2014this is our community. 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