Traditional Workplace Models Are Changing
Is how we work going the way of the telephone?
Remember when telephones hung on a wall or when your family would sit and listen to someone leave a voicemail on your answering machine while eating dinner?
Those days are gone.
Now we take our calls, or not, from wherever we are. And often listen to our voicemail, or not, at our convenience, not at the convenience of the caller.
Yes, the nature of work is changing as well.
Is the traditional office – a multistory, multi-tenant mid-rise office building with common spaces, and shared services, concept next?
We’re evolving into something different.
We’re now on the cusp of a new era in which the traditional workplace model is evolving into something completely different.
The nature of the way we work is changing, as well as how people work together and interact with one another.
What remains, however, is that interaction remains essential. And that is often more effective when teams are happier.
For decades, workers have been tethered to their urban offices, in order to do their jobs effectively. And developers responded with urban high-density buildings. But one size does not fit all.
More and more businesses are letting, and even encouraging, their employees to work from home, in hybrid arrangements, giving employees more freedom with their schedules by working closer to home.
And according to a recent Dallas Business Journal article, Clarify Capital released a survey with data showing that most fully remote workers would still rather look for a new job than return to the office.
The Pandemic accelerated this change.
Did it also dismantle the traditional workplace for good?
The internet had already brought about massive changes in how we work, which made these disruptions seem small by comparison.
“As more businesses adapted to work from home during COVID, it became clear to some that the traditional workplace model was not one size fits all.
Many agreed that it needed an upgrade if it wanted to survive this new era of technology and its effects on how we live our lives now and into future generations.”
– C. Stewart Slack, Cloudloft Development Board of Directors
Despite the impact COVID has made, there is more to this story of change.
Apart from the Pandemic, the most significant driver of change has been the continued migration of educated, affluent, workers to major metro area suburbs.
These people move to suburban communities where they intend to live, work, and play without long commutes.
They not only expect, but demand, convenient access and proximity to schools, services, church, and work.
Many discovered a lack of physical connection with co-workers during the later parts of the lockdown, which led to limited effective communication and creativity.
Zoom calls did not completely fill the gap.
The collective benefits of an office experience mattered, just not every day.
The construct of the office is gone.
“The stupid construct of the office is gone.”
– Thomas Heatherwick, founder of a UK architectural firm
This quote was shared in a recent report from the Texas Real Estate Research Center at Texas A&M University.
With the speed at which technology has been advancing in recent years, many workers see the need for more flexibility in their jobs—and they're not just talking about working from home or getting an extra week off once a year.
They're talking about a new way of life, where they can be more present in their own lives and have more freedom to explore their hobbies and interests outside of work.
“Companies hoping to attract and retain talented workers are having to consider less traditional business models, such as office condos and a move from a major downtown district to more rural locales. Workers will decide whether this is an attractive model.”
– The key takeaway from the Texas Real Estate Research Center article
At Cloudloft, we know it is.
We are building, and have already built, developments strategically located in D/FW Metro markets with significant dynamic growth.
People are looking to avoid rush hour.
Suburban and rural employees are looking to avoid rush hour drives to city centers.
A growing number of people are seeking out opportunities that allow them to live outside of urban centers and work closer to, but not always in, their home.
Others want to play a larger role in the family’s schedule which is often not possible when working many miles and minutes away from where traditional offices are located.
People who live in rural areas often have trouble finding work that allows them the flexibility to be with their family and enjoy living away from the hustle and bustle of city life.
The workplace needs to be flexible enough to accommodate this, but it doesn’t have to mean that employees have to drive for hours every day.
Companies are rethinking the future of their workplaces.
As a result, companies have started rethinking where to office and how they structure their workplaces as well.
Many companies are considering moving to the suburbs, or smaller cities, where talent is in high demand and costs are lower.
Others have started to offer flexible work schedules and remote options, so their employees don’t feel tied down by having to commute into an office every day.
The obvious question then is why don’t developers build office buildings near the new neighborhoods?
The answer is simple, the residents don’t want the big office buildings compromising the character of their neighborhoods.
Nor do they want to add to the density of the area and create the future traffic issues that will follow.
This is part of the Cloudloft magic.
At Cloudloft Development, we build low-density, single-story, office parks that compliment neighborhoods.
Cloudloft office parks provide a logical transition between commercial use and residential needs.
Cloudloft anticipated this shift and is meeting these new needs.
Cloudloft Development builds offices in growing neighborhoods and suburbs allowing workers to live close by and avoid long commutes.
Commuting is a drag.
There, we said it. You were thinking it, too.
The average commute time in the US is 50 minutes round trip.
Some people spend far longer than that.
75% of Americans drive to work and spend at least 1.5 hours a day in their cars. (Source)
A recent study showed that adding 20 minutes to your commute makes you as miserable as getting a 19% pay cut.
The researchers found that even each extra minute of commuting time reduces both job and leisure time satisfaction and increases strain and worsens mental health for workers.
And they shared that reducing your commute time by moving to a new neighborhood or changing jobs is an obvious solution to a too-long commute.
This data supports the trend that many people want to live near where they work so that they can have time with their families, as well as enjoy other activities outside of work.
In the “Breaking New Ground: Shifting Views on Traditional Workplace Locations” article by Harold D. Hunt, Becky Banks, and Steve Ramseur, a Keller Williams Realtor shared this thought:
”We found that, for a small business owner or any company looking for a satellite office, purchasing an office condo provides a number of advantages over leasing traditional office space.”
– Harry Gibbs, Georgetown, Texas
And in real estate, location is everything.
Cloudloft Development helps small business owners:
Attract New Talent
Up-and-coming professionals are moving to the suburbs because they want a place where they can afford a starter home and still have access to top schools, restaurants, and shopping.
Help Current Employees Become More Productive
Spending less time in the car commuting to and from the office means that employees have more time to be productive at work.
Reduce Employee Turnover
Providing employees with a better quality of life can reduce employee turnover.
This is a huge benefit for businesses because it reduces the time and cost associated with hiring and training new people.
Create Wealth By Owning Commercial Real Estate
Investing in commercial real estate builds equity, especially when strategically.
Often property values have increased faster than the rent due to demand for space.
Improve Brand Image
When people move to the suburbs, they often tell others about their experience. If they love what they see, other people follow suit.
Having a presence in the local community for you and your employees provides opportunities to give back to your local community by sponsoring sports teams and providing salaries to help your employees provide for their families.
Prepare to Weather Financial Storms When Times Are Bad
With a traditional workplace model, one in which your company leases its office space, your hands are often tied to lease payments, which can be unpredictable when it comes time to renew your existing lease or negotiate a new lease at a new location.
And being able to maintain an existing location negates the many costs associated with relocating your office, like printing new business collateral, moving expenses, among other costs.
Improve Safety
Employees want to work in an environment that offers comfort and safety.
Customers want comfort and convenience.
In urban cities, increased crime and violence cause people to feel unsafe.
A suburban or rural office offers a peaceful environment where workers can focus on their jobs with less worry and less risk.
Create Growth Through Control
Purchasing an office condo gives you complete control of costs, your environment, hours, access all while reducing costs.
Flexibility For Owners and Employees
Condominium office spaces offer owners and workers more flexibility when it comes to choosing where they want to work from day-to-day, time of day, or day of the week.
And no matter the different phases of their careers, living closer to work reduces commute times.
Added flexibility offers freedom to make decisions about whether or not to take on extra responsibilities at work while still being able to meet caregiving needs outside of the office environment – something many employers have been struggling with lately as more women enter into management roles with young children at home.
Cloudloft can help you explore your business goals.
As we've discussed, there are many reasons why savvy business owners or commercial real estate investors might want to invest in office condos.
What are your business goals?
The most important thing is that you know what your goals are.
Are you ready to explore how Cloudloft can help you achieve them through office ownership?