In the initial months of the COVID-19 pandemic, offices closed, and work was forced into a virtual model. At first, this seemed like an extremely temporary emergency response. Most managers and employees expected they’d go back to their usually in-office routines once things were safe. After all, that’s been our work model for the last century.
But, as we all know, things didn’t go back to normal after a few weeks. We began to see the benefits of virtual work. Businesses started seeing the money they could save on office space with work being done at home. And they began making plans to incorporate virtual work into their long-term plans.
Hybriding + Hot Desking = Less Needed Business Space
We’ll probably never go back to the old ways we knew pre-2020. Instead, a new hybrid model has emerged: work in-person part of the week, at-home the rest. Thanks to virtual capabilities, businesses are cutting the number of hours employees need to spend in the office. Today, on average, business tenants need less office space than ever before.
This office/virtual hybrid model is increasingly being adopted by businesses. One study found that close to 90% of surveyed executives expect to make changes to their real estate strategy, with 60% expected to consolidate office space into at least one premier location. That same survey found over 30% reporting they would be reducing their office space. But that’s not the only thing driving businesses to need less space. The hot desking trend, which began years before the pandemic, has steadily gained momentum.
Hot desking, where employees no longer have specific designated work spaces, looks to shave off another 20% of office space needs. The mindset of having a “home-away-from-home” type of office is being replaced with moreflexible seating models based on needs and projects. The expectation that every employee will be on-site every day is also disappearing.
Real estate managers and building owners are left with a dilemma. What to do with this empty space which would have been in demand prior to the pandemic? At first glance it seems like a recipe for a whole lot of lost revenue.
The Benefits of Hybrid Work Extend to Property Owners
But this doesn’t have to be a doom and gloom scenario for commercial real estate managers. With a bit of improvisation, these managers can happily rent out less space to their long-term contract tenants, with the right plan in place to cash flow the surplus. In fact, that extra space can be rented at a premium rate on a short-term “as needed” basis.
Rather than the space taken by long-term contracts, now multiple businesses can rent and use the space. It’s a bit like the difference between having a home with a long-term renter or using it to Airbnb. Similarly, thanks to SAAS technology, this option now exists for commercial real estate as well.
The Hybrid Business Model is Here to Stay
It’s becoming apparent that the hybrid work model (part time virtual/part time in-person) is beneficial to both businesses and commercial property owners. The tenants enjoy greater flexibility. They cut costs on their long-term office footprint, but never have to worry about going over-capacity. If there’s an occasion that demands more space and seats, the business can simply rent out the extra space.
That’s more appealing than rent space that remains deserted for long stretches of time. With a responsive booking application, the process of adding on additional temporary space is just a few clicks away. Seating allocation solution can organize and simplify the process on the tenant’s end.
Now, on the building managers and property owner side, this scenario is also beneficial. Managers and owners can’t control the new paradigm and the appeal of virtual work. Rather than that space going completely to waste, renting out surplus space on a short-term basis provides an additional revenue steam. Without the right technology however, this process would be nearly impossible.
Commercial Property Owners Thrive in the Hybrid Work Model Thanks to Intuitive Space Management Solution
Space management solutions is what now makes this new hybrid business work model possible, for both tenants and owners. Adapting to this new normal can seem daunting at first. But commercial property owners that adapt will be poised to reap the revenue rewards thanks to their flexibility.
Managing commercial space inventory is challenging, especially when it spans tens of thousands to hundreds of thousands of square feet. That’s why it’s essential to have solutions with the capabilities to allow you to analyze your spaces with just a glance.
What You Need in Space Management Solution
● Digital Archive
Static documents and blueprints can’t give you a “living, breathing” view of your commercial real estate like a digital version can. This will allow you to easily update and access your space from anywhere.
● Dynamic interface
You’ll need an interactive tool that illustrates your inventory in an efficient manner. Color-coded designations for areas types like vacant work space, rented space, common areas and parking lots, streamline the process.
● Editing Tools
Short-term rentals require the ability to update space on the go. Outsourcing tasks to AutoCAD and drafting experts bogs down effectively managing these spaces. Built-in editing tools put you in control of capturing empty assets, dividing areas, or merging them, for smarter space planning.
● Reporting & Analytics
Analyze your business activity with real-time data that gives you the information you need to track and change space activity.
Having tools like these make it possible to take on the additional day-to-day demands of incorporating short-term rentals into your commercial real estate offerings.
A SAAS Solution That Covers All Your Needs
POC System offers two solutions, a seating allocation solution, which includes a booking application as well as a space management solution, where both are designed to maximize space and revenue. POC System solutions are both web based and incorporates all of the features listed above. Designed to improve space utilization and capture empty assets, increase efficiencies, and integrate space data for smarter space management. Visualize floor plans with just a click, POC System gives you the independence to manage remotely without the need for drafting skills, tenants will also enjoy the real-time space data information. With Space Management Solution, manage your entire space inventory data in one user-friendly platform.
To complement its Space Management Solution, POC System also offers the P.O.C. Seating Allocation System. This cloud-based solution allows business managers a real-time way to schedule and book office space and seats within their floor plan. Businesses can now make better use of their space and respond quickly when the need for more space arises.