CBIZ Gibraltar Insights And Resources

Amid economic volatility, employers are becoming increasingly concerned with how to maximize recruitment and retention efforts without raising costs.

While we acknowledge that office space is generally the second largest expense on the balance sheet after payroll, business leaders are taking advantage of market trends for economic advantage and view real estate operating costs as an investment and the work environment as a driver of business.

In fact, in a Korn Ferry survey of 15,000 global executives, two-thirds agreed that corporate culture accounts for more than a third of a company’s market value. Further, a Resume Builder study shows the return to the office driving improvements in revenue (reported by 61% of decision makers), productivity (69%), worker retention (54%), employee relationships (77%) and company culture (75%).

While Amazon made headlines last month for calling employees to return to the office 5-days per week, they similarly cited the ability to learn, collaborate, brainstorm, and connect with colleagues more effectively. The news fueled debate over remote work, pointing to a trend that we expect to continue for hybrid work and striking a balance that affords flexibility.

Accordingly, organizations from nearly every industry, large and small, are turning to tenant representation firms like CBIZ Gibraltar to not only understand the costs and savings opportunities associated with their current and future lease, but ways the work environment can be a business driver and uncover what’s best for their teams.

It’s important to consider not just how many employees will be coming in and how many executives need private offices, but also what types of collaboration, meeting and training spaces will meet business and employee needs.

Exploring Many Forms of Office Upgrades

Companies are opting to upgrade their office space as part of their strategies to attract and retain top talent.

Some decision makers have considered smaller spaces in more expensive buildings that offer more amenities like fitness centers, tenant lounges, food halls and golf simulators. As a result, the flight to quality is an increasing trend, especially with longer-term hybrid work models. 

Of course, upgrading the quality of office space can take many forms. In the competition for tenants, commercial property owners are upgrading shared amenities in their buildings, such as conference centers, tenant lounges, fitness centers and cafes.

For companies that don’t necessarily want to spend a lot on custom build-outs, in the current market, move-in-ready spaces or “spec suites” have increasing appeal. Spec suites give office occupiers the ability to make a move without significant disruptions in productivity and allows tenants to avoid exposure to the current inflated construction costs and lead times.

Office Design Plays a Major Role

From a functional perspective, we’re seeing companies reimagining the purpose and office design with the hybrid worker in mind. They’re looking to create offices that serve as a hub for collaboration and foster productivity. Equally important, it needs to be a place that employees value and want to come to on a regular basis.

Today’s employers are seeking collaboration areas, meeting spaces and team-focused workstations that help employees connect. At the same time, they also want space that provides privacy for focused work and larger meetings.

Organizations expect their office space to help boost productivity, inspire collaboration and spark creativity; and office tenants are responding by designing spaces that are both functional and flexible. That means providing more open floor plans and multi-functional spaces.

Landlords are also recognizing the need to provide common amenities in their buildings. Offering the ability to reserve rooms in a conference center that’s shared by the property’s tenants is an appealing amenity and provides the opportunity for tenants to reduce their footprint even further.

Tenant Representation Matters

When you’re looking for office space, having a representative that exclusively works with a tenant’s best interest in mind allows you to secure market favorable terms — at NO cost to you.

As the leading provider of integrated real estate services with a 100% commitment to advocating the interests and needs of tenants, CBIZ Gibraltar understands that no two companies are alike and works to deliver the best possible solutions for our clients. Together, we uncover the potential of your work environment, maximize human capital, and map the path to critical business success.